Power generation stuck at 5,500MW as Bayelsa gets electricity market autonomy

Nigeria’s national power grid has remained stagnant around 5,500 megawatts for months, defying government assurances of improved electricity supply. This comes as the Nigerian Electricity Regulatory Commission (NERC) officially transferred regulatory oversight of Bayelsa State’s electricity market to the Bayelsa Electricity Regulatory Agency (BYERA).

The transfer, announced on Monday via NERC’s social media platforms, aligns with the amended 1999 Constitution and the Electricity Act 2023, which empower states to manage their electricity markets.

“In compliance with the amended Constitution of the Federal Republic of Nigeria and the Electricity Act 2023 (Amended), the Nigerian Electricity Regulatory Commission has issued an order to transfer regulatory oversight of the electricity market in Bayelsa State from the Commission to the Bayelsa State Electricity Regulatory Agency,” NERC stated.

Under the new arrangement, the Port Harcourt Electricity Distribution Company (PHED) must incorporate a subsidiary to handle intrastate electricity supply and distribution in Bayelsa within 60 days, starting from August 21, 2025. The subsidiary, to be known as PHED SubCo, will be required to obtain an operational licence from BYERA.

“All transfers envisaged by this order shall be completed by February 20, 2026,” the commission added.

With this move, Bayelsa joins a growing list of states, including Lagos, Ogun, Ondo, Ekiti, Imo, Enugu, Niger, Edo, Oyo, and Plateau, which have secured autonomy to regulate their electricity markets. This enables the states to generate, transmit, and distribute power, as well as issue licences to private investors within the sector.

Generation targets unmet

Despite these structural reforms, Nigeria’s overall electricity generation remains unimproved. Minister of Power, Adebayo Adelabu, had pledged to push generation to 6,000MW by the end of 2024, with projections to hit 7,000MW subsequently. The grid briefly peaked at 6,003MW in March 2025, aided by the Band A tariff review, but the milestone was short-lived.

According to NERC’s July 2025 factsheet, power plants recorded an average available capacity of 5,577MW against an installed capacity of 13,625MW—a plant availability factor of just 41 percent, marking a five percent decline from June.

Average hourly generation in July was 4,340 megawatt-hours per hour, a marginal 0.3 percent increase from June, while the load factor stood at 78 percent, down by three percent. Most plants continue to perform far below their installed capacities.

For millions of Nigerians, the much-promised era of reliable electricity remains elusive, even as more states secure autonomy to regulate their power sectors.