Dangote Group and 250 major firms in Nigeria have dumped the nation’s power-generating companies over the constant power outages associated with the national grid.
The firms which include the Nigerian National Petroleum Company Limited (NNPCL), Total, major manufacturers and academic institutions have abandoned the national grid to generate their electricity.
The increasing grid collapse is attributed to aging facilities, lack of maintenance, inadequate investment in the power sector and vandalization of power facilities.
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This constant collapse has led to disruption of business activities and delays in healthcare services.
Nigeria’s distressing national grid
Nigeria has faced recurring power grid failures, with 12 collapses in 2024 alone with one in 2025.
Following the 11th grid collapse, the Hon. Minister of Power, Chief Adebayo Adelabu, established an inter-sectoral investigative committee to examine the causes and potential solutions to Nigeria’s recurring grid failures.
During the ministry’s 2025 budget defense, Adelabu stated that the national grid remains prone to collapse due to the failure to repair the Shiroro-Kaduna-Mando transmission line, damaged in an October 2024 vandalism incident.
Despite this initiative, a 12th grid collapse occurred on December 11, 2024, bringing the total number of grid collapses in 2024 to 12.
The epileptic nature of the power grid reared its ugly head again on Saturday, January 11, 2025 resulting in blackout in several parts of the country.
The incident marks the 13th time the national grid has experienced a collapse in 13 months. Making an average of one collapse per month.
According to The Punch, requests for captive power generation have risen, especially after President Bola Tinubu signed the Electricity Act 2023.
Captive power plants, which generate electricity exclusively for internal use, have grown in number, with many utilizing renewable energy sources like solar.
These plants now produce up to 6,500 MW, surpassing the national grid’s output of 4,500 to 5,000 MW.
Permits for such plants have been issued by the Nigerian Electricity Regulatory Commission (NERC) since 2010.
Dangote’s power generation capacity
The Dangote Group is one of the largest captive power generators in Nigeria, with Dangote Industries Limited generating about 1,500 MW of electricity.
The Dangote refinery alone operates a 435 MW power plant, sufficient to meet the entire power requirement of the Ibadan Electricity Distribution Company.
Aliko Dangote emphasized that the company does not rely on the national grid but produces power solely for self-consumption.
According to the Nigerian Electricity Regulatory Commission (NERC), a total of 249 firms and institutions have been granted permits to generate captive power, collectively producing around 5,180 MW.
When the 1,500 MW generated by the Dangote Group is added to the 5,180 MW produced by the 249 other companies and institutions granted captive power permits, the total power generation from these entities amounts to over 6,500 MW.
This exceeds the current output of Nigeria’s national grid, which typically ranges from 4,500 MW to 5,000 MW.
Other firms that generate power
The Punch report further revealed some of the companies that generate their own power and include MTN Nigeria, the Nigerian National Petroleum Company Limited, Shell, Nigerian Breweries Plc, Flour Mills of Nigeria Plc, Mobil Producing Nigeria Unlimited, Kaduna refinery, Warri refinery, Lafarge Cement Wapco Nigeria Plc, Procter and Gamble Nigeria Limited, and Bank of Industry Ltd.
Among the universities with captive power are the University of Lagos, Abubakar Tafawa Balewa University, Federal University Ndufu-Alike IKWO, Usmanu Danfodiyo University, Obafemi Awolowo University, Federal University of Petroleum Resources, Nnamdi Azikiwe University, Awka, Federal University of Agriculture, Makurdi, Bayero University, Kano, and University of Benin.
