At least 250 manufacturers and academic institutions have dumped their respective power distribution companies and resorted to generating their own electricity.
The organisations, who are mostly bulk electricity users, are not interested in the national grid as they seek to generate reliable electricity for themselves.
This is coming amid the high cost of electricity, fuel price hikes, incessant grid collapses, and line trippings.
In 2021, former President Olusegun Obasanjo dumped the national grid to unveil a two-megawatts solar power project at the Olusegun Obasanjo Presidential Library, Abeokuta, Ogun State.
The project, which cost about N2bn at that time, was described by the former President as a remarkably cost-effective investment.
Findings from different data sources, particularly from the Nigerian Electricity Regulatory Commission, showed that the firms have generated up to 6,500 megawatts of electricity altogether.
This is higher than the country’s power generation which is currently hovering around 4,500MW and 5,000MW.
Further findings by our correspondent indicated that these outlets got permits from the NERC to generate captive power. Some permits were issued as far back as 2010, 2016, 2020, and 2022.
It was learned that the request for captive power generation increased since 2023, especially after President Bola Tinubu signed the Electricity Act 2023
Captive power generation permits are issued to entities that intend to own and maintain power plants exclusively for their consumption. That means the entities are not allowed to sell electricity generated from the plant to any third party.
While some of the plants use gas as feedstock, many embrace the use of renewable energy sources like solar.
