Nigerian discos go off grid in search of profit

By Miriam Malek 15 June 2017
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Construction of the Azura-Edo IPP in Nigeria. The country’s utilites are struggling with low tariffs. (Azura Power) Construction of the Azura-Edo IPP in Nigeria. The country’s utilites are struggling with low tariffs. (Azura Power)

Nigeria’s utilities are looking to boost their revenues by selling power off-grid as they are hamstrung by low state-set electricity prices, which have made it impossible for them to turn a profit.

The Nigerian government has capped electricity tariffs in the country, and although distribution companies – known as ‘discos’ – are adopting the maximum price possible, they say it is still too low for them to break even. The severe depreciation in the value of the naira this year has effectively wiped out any gains provided by the 45% tariff increase the government introduced in early 2016.

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