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Africa records hydropower growth but Nigeria still suffers power shortages — Report

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Africa added more than 4,200 megawatts (MW) of new hydropower capacity in 2025, making it a fast growing region for hydropower development globally, according to a new report released by the International Hydropower Association (IHA).

The report, 2026 World Hydropower Outlook, said the continent commissioned 4,297 MW of new hydropower capacity during the year, the second consecutive year that additions exceeded 4,000 MW.

The growth was driven largely by the completion of mega projects in Ethiopia and Tanzania, even as more than 90 per cent of Africa’s hydropower potential remains untapped.

The findings come as Nigeria continues to grapple with chronic power shortages, frequent grid collapses and one of the world’s largest electricity access deficits despite possessing significant hydropower resources.

Malcolm Turnbull, president of the International Hydropower Association, said countries are increasingly turning to hydropower and energy storage solutions as they seek reliable electricity supplies amid growing dependence on renewable energy and rising geopolitical uncertainties.

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“As electricity systems become more dependent on variable renewables, and geopolitical tensions make reliance on imports more challenging, countries are increasingly recognising the importance of flexibility, long-duration storage and resilient domestic generation. Hydropower and pumped storage are uniquely positioned to provide these services at scale,” he said.

Ethiopia, Tanzania lead Africa’s growth

According to the report, Ethiopia fully inaugurated the 5,000 MW Grand Ethiopian Renaissance Dam (GERD) in 2025, making it the largest power station in Africa.

Tanzania also completed the Julius Nyerere Hydropower Project, a development the report said has substantially reduced the country’s dependence on diesel-powered electricity generation.

The report noted that Africa’s hydropower expansion places the continent at the forefront of global growth in conventional hydropower development.

However, it warned that progress remains far below potential.

“Despite progress, only around 10% of Africa’s hydropower potential has been realised, representing one of the most significant development opportunities in the world, with direct implications for electrification, industrial growth and energy security across a continent growing at twice the global average,” the report stated.

Most projects, it said, remain stalled by financing difficulties, regulatory bottlenecks and delays in securing approvals.

The report also identified weak transmission infrastructure and fragmented electricity networks as major barriers preventing power generated from reaching consumers efficiently.

Nigeria’s modest progress

Nigeria received only a brief mention in the report, which highlighted the rehabilitation of the Kainji Hydroelectric Power Station.

According to the report, the upgrade added 80 MW to the facility, increasing its installed capacity to 600 MW.

The modest increase contrasts sharply with the scale of new investments seen elsewhere on the continent.

Hydropower remains a critical component of Nigeria’s electricity supply. The Kainji, Jebba and Shiroro hydroelectric plants together account for a significant share of power delivered to the national grid.

Yet electricity supply remains inadequate for Africa’s most populous nation.

Data from the Nigerian Electricity Regulatory Commission (NERC) show that while Nigeria’s installed generation capacity exceeds 14,000 MW, actual available generation is significantly lower because of gas constraints, transmission limitations, ageing infrastructure and operational challenges.

The country has also experienced multiple national grid collapses in recent years, highlighting long-standing weaknesses in the electricity value chain.

Energy access challenge

The report arrives at a time when Nigeria is seeking to expand electricity access and reduce dependence on self-generated power.

According to the World Bank, about 86 million Nigerians lack access to electricity, giving the country the largest electricity access deficit in the world.

Businesses and households spend billions of naira annually on diesel and petrol generators to compensate for unreliable grid supply, a situation that raises production costs and constrains economic growth.

Although the 700 MW Zungeru Hydropower Plant has begun contributing electricity to the grid, several proposed hydropower projects across the country have faced delays linked to funding, environmental concerns and implementation challenges.

The IHA report suggests that while Africa is witnessing a resurgence in hydropower development, countries such as Nigeria will require significant investments in generation, transmission and energy storage infrastructure to fully benefit from the continent’s vast renewable energy potential.


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NAICOM Announces Successful Completion of Insurance Sector Recapitalization Exercise

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The National Insurance Commission,(NAICOM),  today announced the successful completion of the twelve-month insurance sector recapitalization exercise.

In pursuant to Section 15 and other relevant provisions of the Nigerian Insurance Industry Reform Act (NIIRA) 2025, signed into law on 31 July 2025 by His Excellency, President Bola Ahmed Tinubu, a as part of his administration’s financial sector transformation agenda towards the attainment of a US$1 trillion economy by 2030.

The successful conclusion of the exercise marks a defining milestone in the transformation of Nigeria’s insurance industry and signals the beginning of a new era for insurance in the country.

It represents a major step towards building a stronger, more resilient, adequately capitalized, professionally governed, and policyholder-focused insurance sector that is better positioned to support national economic growth, deepen financial inclusion, mobilize long-term investment capital, and contribute meaningfully to the stability of Nigeria’s financial system.

Following the enactment of NIIRA 2025, the Commission commenced a structured implementation process to provide strategic oversight, ensure transparency, support operators throughout the transition, and facilitate the effective implementation of the new minimum capital requirements within the statutory compliance period.

To ensure an orderly, transparent, credible, and verifiable process, the Commission issued the Guidelines on the Implementation of Minimum Capital Requirements (MCR) for Insurance and Reinsurance Companies in Nigeria. The Guidelines provided detailed guidance on the statutory minimum capital requirements under NIIRA 2025, eligible and ineligible capital instruments, admissible and non-admissible assets, verification and validation procedures, regulatory timelines, reporting obligations, and supervisory expectations throughout the implementation period.

Through a comprehensive process of review, verification, and validation, the recapitalization exercise has delivered a major boost to the Nigerian insurance industry. It has enhanced the financial resilience of operators, attracted substantial domestic and foreign investment, and rekindled strong investor confidence.

The verified outcome of the exercise indicates that Forty-three (43) insurance and reinsurance companies successfully met the prescribed Minimum Capital Requirements. However, Eight (8) insurance companies that submitted evidence of compliance shortly before the statutory deadline are currently undergoing final verification and regulatory review. This would be concluded within fourteen days.

Nigeria’s insurance industry is now entering a new phase of development founded on stronger capital, improved financial resilience, and enhanced capacity to underwrite larger and more sophisticated risks across strategic sectors of the economy.

The increase in minimum capital will improve insurers’ ability to honour policyholder obligations promptly, absorb emerging risks, support infrastructure and other long-term investments, and compete more effectively within regional and global insurance markets.

The recapitalization exercise also provides a stronger foundation for enhanced risk-based supervision by the Commission, ensuring that regulatory capital remains appropriately aligned with the nature, scale, complexity, and risk profile of each licensed operator.

The Commission reassures policyholders, investors, insurance operators, development partners, and the general public that, as the implementation of NIIRA 2025 continues alongside the modernization of Nigeria’s insurance ecosystem through innovation, technology, and digitization, the Commission will continue to strengthen consumer protection, promote sound market conduct, and accelerate insurance penetration across the country.

Our unwavering commitment remains to build a fair, stable, innovative, inclusive, and globally competitive insurance market that inspires public confidence and delivers lasting value to policyholders and the Nigerian economy.

The Commission will continue to engage stakeholders and provide regular updates on post-recapitalization supervisory actions, companies undergoing final verification, industry restructuring developments, implementation of the Risk-Based Capital Framework, and other strategic initiatives designed to deepen insurance penetration and strengthen confidence in the Nigerian insurance industry.

The National Insurance Commission expresses its profound appreciation to the Federal Government, regulatory and supervisory partners, shareholders, investors, operators, professional bodies, development partners, and all stakeholders whose cooperation and commitment contributed to the successful completion of this historic exercise. The Commission looks forward to even stronger collaboration as Nigeria enters a new era of insurance.

The successful completion of this recapitalization exercise is not the destination but the foundation. It marks the beginning of a new era in which stronger institutions, stronger governance, and stronger public confidence will make insurance work better for every Nigerian.

The post NAICOM Announces Successful Completion of Insurance Sector Recapitalization Exercise appeared first on Business Today NG.

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FAAN says smoke, not fire, caused emergency at Lagos airport

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The Federal Airports Authority of Nigeria (FAAN) has clarified that the smoke observed at Terminal 2 of the Murtala Muhammed International Airport (MMIA), Lagos, on Sunday was not caused by a fire but by the discharge of the terminal’s fire suppression system.

The clarification came hours after the authority initially announced that a fire incident had occurred at the terminal, prompting an emergency response and raising concerns among passengers and airport users.

In its first statement, FAAN said a fire had broken out at Terminal 2 and disclosed that its Aerodrome Rescue and Firefighting Service (ARFFS) had been deployed to contain the situation.

“The FAAN Aerodrome Rescue and Firefighting Service is currently responding to the incident and working diligently to contain the situation,” the authority said, adding that no casualties or loss of life had been recorded.

The announcement triggered emergency response measures at the airport before FAAN issued a fresh update later in the day, clarifying the nature of the incident.

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According to the authority, preliminary investigations showed there was no fire at the terminal.

“Preliminary findings indicate that there was no fire at the terminal. The smoke observed within the affected area resulted from the discharge of the terminal’s FM-200 fire suppression system. The reason for the activation of the fire suppression system is currently being investigated,” FAAN said.

The authority added that normal operations had resumed at the terminal while investigations continue to determine what triggered the fire suppression system.

“Normal operations have since resumed at the terminal, while detailed investigations are ongoing to determine the exact cause of the incident,” it added.

Any report of fire or smoke at an airport automatically triggers emergency response procedures due to the potential risks to passengers, aircraft, and critical airport infrastructure.

FAAN also thanked passengers, airlines, airport users and other stakeholders for their understanding and reiterated its commitment to ensuring the safety and security of airport operations.

Comes five months after a major fire incident at the airport

Although a fire did not cause Sunday’s incident, it came barely five months after a major blaze at the airport’s international terminal disrupted flight operations and damaged critical aviation infrastructure.

In February, PREMIUM TIMES reported that a fire at Terminal 1 of the Murtala Muhammed International Airport forced the temporary closure of the Lagos airfield, causing flight delays and diversions as emergency responders battled the blaze.

The incident left six people injured, while 14 people trapped inside the control tower were rescued. It also damaged critical infrastructure, including weather equipment belonging to the Nigerian Meteorological Agency (NiMet).

Following the February incident, the Minister of Aviation and Aerospace Development, Festus Keyamo, announced plans to demolish the ageing Terminal 1 after describing the damage as extensive. The Federal Airports Authority of Nigeria also ordered a comprehensive structural audit of the affected facility ahead of reconstruction.

READ ALSO: FAAN unveils 2025 bye-laws

While Sunday’s incident was quickly resolved without injuries or significant disruption to flight operations, it has renewed attention on the resilience of critical infrastructure and emergency preparedness at Nigeria’s busiest aviation gateway, coming just five months after the February fire.

The Murtala Muhammed International Airport is Nigeria’s busiest aviation gateway, handling millions of domestic and international passengers annually.

FAAN said investigations are continuing to determine why the FM-200 fire suppression system was activated and promised to provide further updates as more information becomes available.


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