At the Nigeria Electricity Liability Management Company (NELMCO) board retreat in Lagos, Minister of Power Chief Adebayo Adelabu emphasized the reliability of grid connection over captive power plants for bulk electricity consumers. Despite generating a record 5,155 megawatts, the minister noted that industries’ lack of trust in the grid led them to rely on expensive captive power.
Adelabu highlighted the high costs of captive power generation, ranging from N350 to N400 per kilowatt-hour for gas-connected industries and N950 to N550 for diesel and petrol, respectively. He urged industries to reconnect to the grid for cost-effective electricity, promising efforts to encourage bulk users to return.
The minister outlined the government’s targets for the Nigeria Electricity Supply Industry (NESI), including attaining 6GW by December 2024, 30 gigawatts by 2030, and universal access. He discussed plans to stimulate demand during off-peak periods with differential tariffs and smart meters.
Adelabu emphasized the importance of corporate governance, transparency, and accountability in driving sustainable growth. He encouraged the power sector to adopt environmental, social, and governance (ESG) standards and reflected on sustainable ways to address tariff shortfalls and boost financing.
The minister concluded by stressing the need for effective leadership, board agility, and innovation in the electricity industry to ensure reliable and affordable power for Nigeria’s economic development.
