Description
At least 11 companies, including NRS and major industrial players, have secured captive power permits, signaling a growing corporate shift away from Nigeria’s unstable national grid.
Nigeria’s struggling electricity sector has recorded another major setback as at least 11 companies have exited the national grid to generate their own power independently.
According to a BusinessDay Big Read report, firms including NRS and several industrial operators have secured captive power generation permits from the Nigerian Electricity Regulatory Commission (NERC). The development underscores growing dissatisfaction among corporate electricity consumers over persistent grid instability, unreliable supply, and rising energy costs.
The companies span multiple sectors including manufacturing, steel, engineering, footwear production, bakery services, and revenue administration. Collectively, they hold captive generation capacity of approximately 130.19 megawatts (MW), strictly for internal consumption.
Captive power generation allows companies to produce electricity solely for their own use rather than relying on the national grid. While this move ensures operational stability, it also reflects deep-rooted structural weaknesses within Nigeria’s electricity value chain.
For years, businesses have struggled with erratic power supply, frequent grid collapses, and escalating tariffs. Many firms have long relied on diesel generators as backup power sources, but recent regulatory approvals now formalize full independence from the grid for some of these large consumers.
Energy analysts note that the growing corporate exodus could have wider implications for Nigeria’s electricity market. As high-paying industrial customers disconnect, distribution companies may lose a significant revenue base, potentially worsening financial strain across the sector.
At the same time, companies argue that self-generation offers cost predictability, operational efficiency, and reduced downtime — all critical factors for manufacturing and heavy industry where power interruptions translate directly into production losses.
The trend also highlights the urgency of reforming Nigeria’s electricity infrastructure. Despite privatisation efforts and regulatory changes over the past decade, the grid continues to face generation shortfalls, transmission bottlenecks, and distribution inefficiencies.
Industry experts suggest that unless reliability improves, more corporations may pursue captive power solutions, particularly as embedded generation and alternative energy technologies become more accessible.
While captive generation offers a short-term solution for individual companies, stakeholders warn that widespread grid abandonment could weaken long-term sector sustainability if systemic reforms are not accelerated.
Nigeria’s power crisis remains a defining challenge for economic growth. As corporate players increasingly take energy supply into their own hands, the future of the national grid faces renewed scrutiny.