GenCos eyes FX gains from West Africa power pool amid market shifts

….WAPP to achieve permanent synchronisation by June 2026

Power generation companies (GenCos) in Nigeria, expect to secure critical foreign exchange (FX) gains through participation in the West Africa Power Pool (WAPP), as recent market shifts make cross‑border electricity trading more lucrative.

This is as the GenCos continue to decry unfavorable shifts within the domestic electricity market, which is plagued by liquidity crisis, non-cost-reflective tariffs, and persistently high levels of stranded generation capacity.

The WAPP project, aimed to promote and develop power generation and transmission infrastructures as well as to coordinate power exchange among the ECOWAS Member states is expected to achieve permanent synchronisation of all concerned countries by the end of June 2026.

Speaking to BusinessDay on expectations ahead the full synchronisation of the project, Joy Ogaji, Chief Executive Officer, Association of Power Generation Companies said that the project will create a viable market for power generation companies, as Nigerians are still unable to fully consume power generated in country.

Ogaji, explaining that the west African market will ease the GenCos access to foreign exchange, said that about 98 percent of the generation business is dollarized. She added that without a dedicated window for the forex, Gencos find it difficult to access dollars to carry out mandatory repairs, operational maintenance among others.

Read also: Nigeria completes power grid synchronisation with West African network — NISO

She said that the essence of the synchronisation is to ensure and to enable Nigeria to be able to send power across to its neighbors.

“From 2013 till now, power utilization in Nigeria has not been more than 50 percent, and then the generation companies are gradually dying because, they make power available, we’re not able to fully utilize it, and they are not even allowed to sell across. So, this regional market, which is the West African Power Pool, is one means of the generation companies selling power and at least earning dollars.

“So, when people in Nigeria keep saying, you are sending power to other countries when we don’t have enough, there are two things involved. I have told you since 2013 till now, we have not been able to utilize more than 50 percent of the available power, that is one. So, should we keep the power just sitting when we are not using? It doesn’t make economic sense. So, when through this West Africa grid synchronization, GenCos will be able to sell some of the stranded capacity across to our neighbors.”

She also said that the project is critical to Nigeria’s effective diplomatic relationship with the neighboring countries, adding that “if we stop giving them power, they have the right to dam the river and that will cut down about 30 percent of power that we’re getting through the hydros.

“So, it brings in the needed forex, foreign exchange, to enable the GenCos to operate and also boost the economy. So, we are glad that under the leadership of the current NISO, they’ve been able to achieve that.”

Also commenting on the project, Adebayo Adelabu, minister of power said that when fully synchronized, Nigeria will operate under a stronger, more resilient system, benefiting from cross-border support that enhances grid stability, reduces the risk of system disturbances, and improves the overall reliability of electricity supply.

According to Adelabu, integrating the national grid into the broader regional system places Nigeria at the centre of a modern operating environment where electricity networks no longer function in isolation but as interdependent components of a shared regional framework.

He explained that by becoming part of a larger synchronous area, Nigeria will be able to rely on regional support during periods of supply shortfall, while also strengthening neighbouring networks when required.

This form of mutual support he said, is a defining feature of advanced power systems globally and is essential for long-term regional energy security.

“Once permanent synchronisation is achieved, Nigeria will operate under a stronger, more resilient system, benefiting from cross-border support that enhances grid stability, reduces the risk of system disturbances, and improves the overall reliability of electricity supply.

“The impact of this achievement is already evident in several critical areas. First, it strengthens confidence in Nigeria’s power system. For many years, factors such as gas shortages, infrastructure constraints, vandalism, and occasional system disturbances have adversely affected grid stability.

“The successful synchronisation test shows that, despite these challenges, Nigeria has the technical competence, engineering capacity, and institutional discipline required to operate at global standards. It positions the country as a credible partner for cross-border energy exchange and a reliable participant in the West African Electricity Market,” he said.

The Nigerian Independent System Operator (NISO), recently announced that Nigeria successfully conducted a grid synchronisation test connecting the national electricity grid with the interconnected WAPP system on 8th November 2025.

Countries covered by the project are: Nigeria, Ghana, Niger, Mali, Sierra Leone, Liberia, Senegal, Togo, Burkina Faso, Guinea, Gambia, Guinea Bissau, Cote d’Ivoire, Benin.