The Nigerian Electricity Regulatory Commission (NERC) has revealed that 46 additional companies and institutions secured permits in 2024 to generate their own electricity, further expanding the list of bulk consumers ditching the national grid.
According to NERC’s latest report, 24 bulk electricity users received licences to produce a combined 138 megawatts (MW) for captive use, while another 22 firms obtained off-grid generation permits totalling about 151MW. Combined, these new approvals add up to roughly 289MW of self-generated power.
The bulk users include manufacturing giants, universities, and other large-scale consumers. Notable names on the list are African Steel Mills (20MW), MTN Nigeria (15.94MW), Nigerian Breweries branches (31.36MW), and several federal universities. Off-grid licences were dominated by gas-powered plants, led by Golden Penny Power Limited with 113.2MW across multiple locations, alongside solar projects from Daybreak Power Solutions totalling 24.51MW.
NERC attributed the growing shift to unstable grid performance, highlighting that the system’s 2024 frequency and voltage readings fell outside the limits prescribed in the Grid Code. This instability, combined with frequent blackouts—12 total grid collapses were recorded last year—has made many industrial operators turn to more reliable but costlier captive power options.
Data compiled by the commission and industry sources shows that around 250 companies and institutions now generate their own electricity, producing over 6,500MW—surpassing Nigeria’s current grid output, which fluctuates between 4,500MW and 5,000MW. The Dangote Group alone contributes 1,500MW, with its refinery’s 435MW plant capable of powering the entire Ibadan Electricity Distribution Company network.
Power Minister Adebayo Adelabu expressed concern over the exodus, stressing that grid supply remains cheaper and, if stabilised, could win back these large consumers. Energy expert Adetayo Adegbemle also warned that the loss of “anchor tenants” on the grid undermines overall stability and makes collapses more likely.
The trend has accelerated since the passage of the Electricity Act 2023, which liberalised power generation and distribution. However, industry watchers say without urgent investment to improve reliability, more major consumers may follow suit and leave the grid behind.
