- NERC approved electricity generation permits for six firms and Nile University to produce up to 30MW amid ongoing grid failures.
- Over 250 manufacturers and institutions now generate a combined 6,500MW off-grid.
The Nigerian Electricity Regulatory Commission (NERC) has approved electricity generation and distribution permits for six firms and Nile University of Nigeria, allowing them to produce 30 megawatts (MW) of power under various arrangements.
According to its Q4 2024 report, NERC granted an off-grid generation licence to Daybreak Power Solutions Limited with a capacity of 2.63 MW, while four other companies received captive power generation permits: Ro-Marong Nigeria Limited (4.40 MW), Quantum Paper Limited (7 MW), Psaltry International Company Limited (1.10 MW), and Nile University (10 MW). These permits allow entities to generate electricity solely for their consumption.
To boost off-grid capacity, the commission also issued 24 mini-grid permits to Prado Limited across Benue, Nasarawa, Niger, Ondo, and Kano States, totalling 5.5 MW. Additionally, Cross Boundary Energy received five certificates to distribute power in Kogi State.
These developments come amid widespread disillusionment with the national grid. As of September 2023, over 250 manufacturers and academic institutions, including the Dangote Refinery, had disconnected from the grid and begun generating their electricity, contributing around 6,500 MW, surpassing the current national grid generation of approximately 5,500 MW.
Minister of Power Adebayo Adelabu attributed this trend to a lack of trust in grid reliability. He noted that while captive power is more expensive, costing ₦350 to ₦400 per kilowatt-hour with gas and ₦950 to ₦1,000 with diesel, industries prefer its consistency over the uncertainty of grid supply.
NERC pointed to persistent voltage fluctuations such as spikes, dips, and brownouts as key drivers of this migration. These fluctuations often damage sensitive industrial equipment, prompting bulk users to seek more stable alternatives.
The commission assured that it is working closely with the Transmission Company of Nigeria and other stakeholders to maintain grid voltage within the required range and improve supply reliability for end users.