Nigeria's energy landscape is a tale of contradictions, where challenges and opportunities coexist. The Nigerian Midstream and Downstream Petroleum Regulatory Agency (NMDPRA) reveals a staggering average daily consumption of 14 million liters of diesel, primarily driven by the unreliability of on-grid power. With diesel prices at N834.12/litre, Nigerians spent over N1 trillion (2.2 billion USD) in Q2 2023, signaling a heavy reliance on alternative power sources, particularly generators.
A revealing insight emerges when comparing this expenditure with the electricity sector's performance. Despite Distribution Companies (Discos) billing N354.6 billion and collecting only N267.8 billion in Q2 2023, highlighting gaps in revenue collection, the potential for up to N637.6 billion in additional revenue from enhanced power availability becomes evident. Notably, this estimation is exclusive to diesel consumption and doesn't encompass fuel generator sets, suggesting an even greater untapped revenue potential.