\n This bold effort aims to end decades of self-generation and chronic outages that have stifled Africa\u2019s biggest economy.\n <\/p>\n
\n More than 200 major companies in Nigeria currently generate their own electricity, collectively producing over 6,000 megawatts (MW), more than the grid itself delivers to over 220 million people. The Nigerian Electricity Regulatory Commission (NERC) issued 16 new captive-power licenses in the first quarter of the year alone, covering 953 MW of private generation.\n <\/p>\n
\n At the Nigerian Economic Summit in Abuja, Power Minister Adebayo Adelabu acknowledged the heavy toll unreliable power has taken on business operations, but said the government is investing in reforms aimed at winning back major consumers.\n <\/p>\n
\n \u201cThe major consumers are manufacturers; we are trying to bring them on the grid. Once reliability improves, industrial customers will return, grid power is cheaper than captive generation,\u201d Adelabu said\n <\/p>\n
Power from gas \u2014 but gas is the problem<\/p>\n
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\n Roughly 70% of Nigeria\u2019s electricity comes from gas-fired plants. Yet, despite the country\u2019s 200 trillion cubic feet of reserves, supply remains erratic due to pricing and payment bottlenecks.\n <\/p>\n
\n \u201cThe gas sub-sector is suffering from double jeopardy \u2014 inappropriate pricing that discourages domestic supply, and liquidity issues from non-payment,\u201d Adelabu said.\n <\/p>\n
\n Nigeria LNG chief executive Philip Mshelbila echoed these concerns, saying production remains \u201cway below par\u201d for both export and domestic consumption.\n <\/p>\n
\n \u201cSince 70% of our power comes from gas, if you don\u2019t solve the gas value chain, you\u2019re wasting your time in power. Money flows from the light bulb back to the reservoir,\u201d he said.\n <\/p>\n
Private sector\u2019s costly energy burden<\/p>\n
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\n Telecom giant IHS Towers, which operates 16,000 sites across Nigeria, runs primarily on diesel.\n <\/p>\n
\n \u201cSeventy percent of our time is spent on generators, diesel, operations, and logistics. If there were a reliable grid, those resources could go into new verticals and innovation,\u201d said Mohamad Darwish, CEO of IHS Nigeria.\n <\/p>\n