Nigerian Minister of Power, Adebayo Adelabu, has revealed that a significant number of the country’s manufacturers, industries, and other bulk electricity users have chosen to bypass the national grid, citing a lack of trust and confidence in the system.
Adelabu made this disclosure during a speech at the retreat of the Nigeria Electricity Liability Management Company’s board in Lagos on Thursday.
The minister expressed concern over the growing trend of industries opting for more expensive alternatives, such as captive power plants, rather than relying on the national grid.
Despite recent improvements, including a record electricity generation of 5,155 megawatts in July, Adelabu noted that these advances have not translated into increased consumption due to ongoing distribution challenges.
“The majority of bulk electricity users, such as industries, are off the grid due to a lack of trust and confidence in the past,” Adelabu stated. “They now have their captive power plants in their industries, which is more expensive.”
This shift away from the national grid has been compounded by the recent 240 percent electricity tariff hike for Band A customers, introduced in April 2024.
The tariff increase, which affects customers receiving at least 20 hours of power supply daily, has significantly raised energy costs for manufacturers, industries, and the general populace.
Adelabu, however, emphasized the viability of the national grid as a reliable power source for bulk electricity consumers, urging industries to reconsider their reliance on alternative power solutions.
He expressed optimism that with the right reforms and improvements, the national grid could regain the trust of industrial users and become the preferred source of electricity once again.
