Nigeria’s Minister of Power, Adebayo Adelabu, disclosed at the 2024 Nigeria Oil and Gas Conference in Abuja that Nigerians collectively spent N16.5 trillion on diesel, petrol, and generators in 2023. This staggering figure, he emphasized, underscores the pervasive reliance on off-grid power sources across industries and households alike.
Adelabu highlighted that despite the formal power sector’s revenue amounting to just N1 trillion last year, expenditures on alternative power solutions outside the grid, including captive gas-powered generators, approached nearly N20 trillion. He stressed the potential for redirecting a fraction of these informal expenditures back into the formal sector, projecting substantial revenue boosts that could pave the way for more reliable, 24/7 electricity supply nationwide.
Underlining the economic disparities in power costs, Adelabu noted that Band A customers currently benefit from uninterrupted electricity supply at a subsidized rate of N206 per kilowatt-hour (kWh). In contrast, industries relying on captive gas generators pay approximately N290/kWh, while those using petrol and diesel generators face significantly higher costs ranging from N450/kWh to over N900/kWh.
Adelabu’s remarks underscored the government’s commitment to restoring public trust in the national grid and encouraging industries to transition from costly self-generation practices back to the formal power sector, perceived as a more economical and sustainable option for enhancing productivity and economic growth in Nigeria.
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