- NRS secures approval to generate its own power, highlighting a growing shift away from the unreliable national grid.
- Rising captive and mini-grid projects signal a structural shift in the power sector, with industries prioritising self-generation despite higher costs.
The Nigerian Revenue Service (NRS) has secured approval to generate its own electricity. It has joined a growing list of organisations moving away from Nigeria’s troubled national grid. Persistent outages continue to disrupt business and government operations, pushing institutions toward self-generation.
According to Nigerian Electricity Regulatory Commission, the agency obtained a captive power permit for a 6.08MW plant at its headquarters in Central Business District Abuja. This move follows similar actions by key institutions, including solar investments at Aso Rock Villa.
NERC approved 11 captive power permits in the fourth quarter, with total capacity exceeding 130MW. Major beneficiaries include Abuja Steel Mill Nigeria Limited with 50MW and Yongxing Steel Company Limited with 45MW in Edo State. Other companies across Abuja, Kano, Jigawa, and along the Lagos-Ibadan corridor also secured smaller permits.
This surge in captive generation reflects deep challenges in Nigeria’s power sector. Frequent grid collapses and unreliable supply have forced industries to rely on diesel generators, increasing production costs and reducing competitiveness. As a result, even critical public institutions now bypass the national grid.
In addition, NERC issued 31 mini-grid permits with a combined capacity of 8.37MW. These projects, spread across states such as Benue, Nasarawa, Cross River, Taraba, and Delta, highlight rising demand for decentralised energy solutions, especially in underserved areas.
Analysts say the trend signals a structural shift following the Electricity Act 2023, which enables large consumers to generate their own power. However, while self-generation offers relief for those who can afford it, it weakens the financial base of distribution companies as high-value customers exit the grid.
Across the country, more than 250 manufacturers, universities, and commercial entities now generate their own electricity. They produce about 6,500MW. This exceeds the average output of the national grid. For example, Dangote Group alone generates about 1,500MW for its operations.
Energy experts warn that unless large consumers return to the grid, the sector will face a prolonged liquidity crisis. Meanwhile, ordinary consumers may continue to bear the brunt of unreliable supply as investment and demand shift away from the central system.