Wave of captive power projects grows as businesses and government agencies lose faith in Nigeria’s struggling electricity system…..
Nigeria’s worsening power crisis is forcing even key government institutions to take matters into their own hands, with the Nigerian Revenue Service becoming the latest to abandon reliance on the national grid.
The agency has secured approval to generate its own electricity, opting for a 6.08-megawatt captive power plant at its headquarters in Abuja’s Central Business District. The permit was granted by the Nigerian Electricity Regulatory Commission, according to its latest quarterly report.
The move highlights a growing shift across both the public and private sectors, where unreliable grid supply has pushed organisations toward self-sufficiency. Persistent outages and frequent system collapses have made stable electricity increasingly difficult to guarantee, disrupting operations and raising costs nationwide.
This latest development comes shortly after the presidential complex, Aso Rock Villa, invested heavily in solar infrastructure another sign of declining confidence in the country’s central power system.
The Revenue Service’s decision coincides with the unveiling of its new headquarters in Abuja, but it also underscores a deeper structural issue: even institutions responsible for funding government operations no longer trust the grid to meet critical energy needs.
Data from the regulator show that the trend is accelerating. Within the same reporting period, multiple organisations secured approvals for captive power generation projects, with a combined capacity exceeding 130 megawatts. Major industrial players are leading the shift, investing heavily in independent power solutions to shield themselves from disruptions.
At the same time, smaller-scale alternatives are gaining traction. Dozens of mini-grid projects were also approved, targeting underserved communities and commercial clusters in states such as Benue, Nasarawa, Cross River, Taraba, and Delta. These decentralised systems are increasingly seen as a practical workaround in areas where grid expansion has lagged.
Analysts say the surge in self-generation reflects a fundamental turning point in Nigeria’s electricity landscape, especially following reforms introduced under the Electricity Act 2023. The law opened the door for large consumers to generate and manage their own power more easily.
But while the shift offers relief for those who can afford it, it also raises concerns about the long-term viability of the national grid. As major consumers exit, distribution companies risk losing high-paying customers, further weakening an already fragile system.
Across the country, the scale of this transition is striking. More than 250 large organisations including manufacturers, universities, and commercial hubs are now generating their own electricity. Combined, they produce an estimated 6,500 megawatts, surpassing the average output of the national grid.
Major industrial groups like Dangote Group are at the forefront of this shift, generating significant power internally to sustain operations. From industrial estates in Lagos and Ogun to shopping centres in Abuja and Port Harcourt, self-generation has become the norm rather than the exception.
For many, the economics are straightforward: while generating power independently is expensive, it is still more reliable than depending on an unstable grid.
Energy experts warn, however, that this growing exodus could deepen the sector’s liquidity crisis. Without the return of bulk consumers, the grid may struggle to attract the investment needed for meaningful improvement.
What was once considered an emergency backup plan is now evolving into a long-term survival strategy, one that is reshaping how electricity is produced and consumed across Nigeria.
