In response to persistent power outages and grid collapses, six companies and Nile University of Nigeria have received approval from the Nigerian Electricity Regulatory Commission to generate and distribute their own electricity.
According to a new report by NERC, the firms are permitted to produce a combined capacity of up to 30 megawatts under different arrangements. The approvals include an off-grid generation licence issued to Daybreak Power Solutions Limited with a capacity of 2.63 MW in the last quarter of 2024.
Four other firms were granted captive power generation permits, which allow them to produce electricity exclusively for their internal use. These include Ro-Marong Nigeria Limited (4.40 MW) in Lagos, Quantum Paper Limited (7 MW) in Ogun State, Psaltry International Company Limited (1.10 MW) in Oyo State, and Nile University (10 MW) in Abuja.
Under Section 165(1)(m) of the Electricity Act 2023, NERC also continues to promote the development of renewable energy and mini-grid systems by issuing permits and certificates for construction, operation, and maintenance of mini-grids. A total of 24 mini-grid permits with a combined capacity of 5.5 MW and five registration certificates totaling 450 kW were issued in Q4 2024.
Prado Limited secured all 24 mini-grid permits for projects across Benue, Nasarawa, Niger, Ondo, and Kano States. Additionally, Cross Boundary Energy received five certificates to distribute electricity in Kogi State.
During the same period, NERC certified 18 Meter Service Providers and six meter installation companies. It also licensed six manufacturers, three vendors, three importers, and issued 15 permits for Meter Asset Providers.
The move comes as more manufacturers and institutions continue to exit the national grid, opting to generate their own electricity to escape chronic blackouts. By September 2023, around 250 entities, including the Dangote refinery, had shifted to self-generation, producing up to 6,500 MW—exceeding the national grid’s output, which fluctuates around 5,500 MW.
Minister of Power, Adebayo Adelabu, had stated that bulk power users no longer trust the grid, despite the higher costs of captive generation, which range from ₦350–₦400 per kWh for gas users and up to ₦1,000 for diesel.
NERC attributed the shift to unreliable grid performance and damaging voltage fluctuations. These include spikes, dips, and brownouts that pose a threat to industrial equipment, forcing companies to seek more stable alternatives.
The commission said it is working with the Transmission Company of Nigeria and other key stakeholders to stabilize voltage levels and ensure a safer, more dependable supply to consumers.
