The Federal Government has voiced serious concerns about the increasing trend of manufacturers and industries abandoning the national power grid in favor of captive power solutions. This shift has been driven by a significant loss of confidence in the reliability of the national grid, despite recent achievements in power generation.
During a board retreat of the Nigeria Electricity Liability Management Company (NELMCO) held in Lagos, Minister of Power, Mr. Adebayo Adelabu, highlighted the issue, revealing that Nigeria’s grid has achieved a record electricity generation capacity of 5,155 megawatts. However, much of this capacity remains underutilized due to the mass exodus of bulk electricity users, particularly in the industrial sector, who have turned to their own captive power plants.
Adelabu expressed deep concern over the situation, noting, “The majority of large-scale electricity consumers, such as industries, have disconnected from the grid due to past failures in reliability. They have turned to their own captive power plants, which are significantly more costly.” The Minister underscored the advantages of grid power, which, despite its current challenges, remains a more cost-effective and reliable option compared to the expensive captive power solutions adopted by many industries.
The growing trend of abandoning the grid has significant implications for both the electricity sector and the broader economy. The Minister emphasized the Federal Government’s commitment to addressing these issues by improving the reliability and stability of grid power. Efforts are being made to restore confidence among industries and encourage them to reconnect to the grid, thereby enhancing the utilization of the available power capacity.
As part of the government’s strategy, there will be a focus on investing in infrastructure improvements and implementing measures to prevent frequent power outages. The aim is to create a more dependable electricity supply that can support industrial activities and boost overall economic productivity.
The Federal Government’s push to revitalize the national grid comes at a critical juncture, as the underutilization of power capacity represents both a waste of resources and a hindrance to economic growth. By addressing the underlying issues and enhancing grid reliability, the government hopes to attract industries back to the national grid and ensure that the full potential of Nigeria’s electricity generation capacity is realized.
