On Thursday, at the Board retreat of the Nigeria Electricity Liability Management Company in Lagos, Minister of Power Adebayo Adelabu expressed concern over the increasing number of bulk electricity consumers who are abandoning the national grid in favor of their own power generation, as reported by Punch.
Adelabu stated that despite achieving a record electricity generation of 5,155MW, this power is not being utilized due to a lack of trust in the grid’s reliability.
Adelabu noted that many industries have turned to captive power plants, which are significantly more costly than grid electricity.
He stated that the average cost of producing captive power ranges from N350 to N400 per kilowatt-hour for those using gas, while diesel and petrol-powered systems cost about N950 and N550 per kilowatt-hour, respectively.
He emphasized that efforts will be made to encourage these bulk users to return to the grid by improving the trust and stability of the national power supply.
The minister outlined the government’s short-term goal of reaching a power generation threshold of 6 gigawatts by December 2024, with a longer-term Vision 30-30-30 plan aiming for 30 gigawatts by 2030, including 30% from renewable sources.
Adelabu mentioned that a differential tariff for off-peak periods is being considered to stimulate demand, especially in light of decreased usage during these times.
He urged board members to focus on embedding corporate governance and adhering to high standards of transparency, accountability, and integrity.
Adelabu also stressed the importance of incorporating environmental, social, and governance (ESG) standards into corporate operations, noting that sustainable practices are essential for aligning with Nigeria’s climate goals and enhancing long-term value for the country.