Major firms in Nigeria have dumped the nation’s power-generating companies over the constant power outages associated with the national grid.
- Major firms in Nigeria have abandoned their power distribution companies due to constant power outages
- The recurring grid collapses are attributed to ageing facilities, lack of maintenance, and vandalization of power facilities
- Dangote Industries, 249 firms collectively produce over 6,500 MW, surpassing the national grid’s output
The firms which include Dangote group, the Nigerian National Petroleum Company Limited (NNPCL), Total and about 250 manufacturers and academic institutions have abandoned the national grid to generate their electricity.
The recurring incidence of grid collapse is attributed to ageing facilities, lack of maintenance, inadequate investment in the power sector and vandalization of power facilities.
This constant collapse has led to disruption of business activities and delays in healthcare services.
Nigeria’s faltering national grid
Nigeria has faced recurring power grid failures, with 12 collapses in 2024 alone.
Following the 11th grid collapse, the Honourable Minister of Power, Chief Adebayo Adelabu, established an inter-sectoral investigative committee to examine the causes and potential solutions to Nigeria’s recurring grid failures.
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However, despite this initiative, a 12th grid collapse occurred on December 11, 2024, bringing the total number of grid collapses in 2024 to 12.
According to The Punch, requests for captive power generation have risen, especially after President Bola Tinubu signed the Electricity Act 2023.
Captive power plants, which generate electricity exclusively for internal use, have grown in number, with many utilizing renewable energy sources like solar.
These plants now produce up to 6,500 MW, surpassing the national grid’s output of 4,500 to 5,000 MW.
Permits for such plants have been issued by the Nigerian Electricity Regulatory Commission (NERC) since 2010.
Dangote’s power generation capacity
The Dangote Group is one of the largest captive power generators in Nigeria, with Dangote Industries Limited generating about 1,500 MW of electricity.
The Dangote refinery alone operates a 435 MW power plant, sufficient to meet the entire power requirement of the Ibadan Electricity Distribution Company.
![Aliko Dangote, president and chief executive officer of Dangote Group, during a Bloomberg Television interview in New York, US, on Monday, Sept. 23, 2024. [Getty Images]](https://ocdn.eu/pulscms/MDA_/53f5614378c7795553e3bc36960a5cf3.jpg)
Aliko Dangote emphasized that the company does not rely on the national grid but produces power solely for self-consumption.
According to the Nigerian Electricity Regulatory Commission (NERC), a total of 249 firms and institutions have been granted permits to generate captive power, collectively producing around 5,180 MW.
When the 1,500 MW generated by the Dangote Group is added to the 5,180 MW produced by the 249 other companies and institutions granted captive power permits, the total power generation from these entities amounts to over 6,500 MW.
This exceeds the current output of Nigeria’s national grid, which typically ranges from 4,500 MW to 5,000 MW.
Other firms that generate power
The Punch report further revealed some of the companies that generate their own power and include MTN Nigeria, the Nigerian National Petroleum Company Limited, Shell, Nigerian Breweries Plc, Flour Mills of Nigeria Plc, Mobil Producing Nigeria Unlimited, Kaduna refinery, Warri refinery, Lafarge Cement Wapco Nigeria Plc, Procter and Gamble Nigeria Limited, and Bank of Industry Ltd.
Among the universities with captive power are the University of Lagos, Abubakar Tafawa Balewa University, Federal University Ndufu-Alike IKWO, Usmanu Danfodiyo University, Obafemi Awolowo University, Federal University of Petroleum Resources, Nnamdi Azikiwe University, Awka, Federal University of Agriculture, Makurdi, Bayero University, Kano, and University of Benin.
Stakeholders reaction
During the ministry’s 2025 budget defense, Power Minister, Adebayo Adelabu stated that the national grid remains prone to collapse due to the failure to repair the Shiroro-Kaduna-Mando transmission line, damaged in an October 2024 vandalism incident.
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The line’s failure, caused by persistent insecurity, has placed significant pressure on the grid, leading to frequent collapses.
Adelabu also expressed concern over bulk electricity consumers leaving the national grid for self-generated power, stressing that grid connection is more reliable.
He lamented that despite generating over 5,155 MW, distribution companies are not using the power allocated to them due to fears of debt from low recovery rates.
Stakeholders have also cautioned that grid collapses will persist unless urgent issues like outdated equipment, inadequate gas supply, poor coordination, lack of reserves, and other challenges are addressed.
