AGS NEWS – The Minister of Power, Adebayo Adelabu, has expressed concern over the increasing number of bulk electricity consumers who are abandoning the national grid in favor of generating their own power.

He highlighted that grid connection is more reliable and cost-effective than the captive power plants currently being used by these consumers.

Speaking at the Nigeria Electricity Liability Management Company’s Board retreat in Lagos on Thursday, Adelabu noted that despite a record generation of 5,155MW, much of it remains unused due to a lack of trust in the grid’s reliability.

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He explained that the cost of generating power through captive plants is significantly higher than grid-supplied electricity, with costs ranging from N350 to N950 per kilowatt-hour, depending on the fuel source.

The minister emphasized efforts to restore confidence in the grid and encourage bulk users to reconnect for cheaper power.

He outlined the government’s short-term target of reaching 6 gigawatts by December 2024, with a long-term goal of 30GW by 2030, incorporating 30% renewable energy.

Adelabu also discussed the possibility of introducing differential tariffs during off-peak periods to boost demand and urged the power sector to embrace corporate governance and environmental, social, and governance (ESG) standards.

He stressed the importance of transparency, accountability, and sustainable practices in driving growth and achieving Nigeria’s climate goals.