MTN Nigeria, three federal universities, and more than 40 other organisations have been granted approval to set up captive power plants as the push for reliable electricity intensifies.

According to the Nigerian Electricity Regulatory Commission’s (NERC) 2024 report, a total of 46 bulk power users received permits last year to generate their own electricity, producing a combined capacity of about 289 megawatts. The move comes as frequent blackouts, unstable voltage, and fluctuating costs continue to hamper operations for industrial and commercial entities.

MTN will build four power generation plants in Lagos, with a total capacity of 15.94 megawatts. The University of Abuja, University of Calabar & Teaching Hospital, and the University of Agriculture, Michael Okpara, Umudike, also received permits to produce 3MW, 7MW, and 3MW respectively.

Other approved projects include African Steel Mills (20MW), West African Ceramics (10MW), Royal Engineered Stones (4MW), Ro-Marong Nigeria (4.4MW), SweetCo Foods (1.5MW), Armilo Plastics (1.13MW), and Psaltry International (1.1MW).

Captive power generation plants are designed for in-house electricity production, not for commercial sale. NERC noted that such facilities are particularly vital for industries whose heavy-duty machinery requires a stable frequency and cannot tolerate sudden grid fluctuations.

The regulator says the shift towards independent power generation highlights the ongoing strain on Nigeria’s public electricity network and the urgent need for infrastructure upgrades. For the companies involved, these on-site plants are expected to cut downtime, reduce reliance on the fragile national grid, and help manage costs in the long run.