The Minister of Power, Adebayo Adelabu, has revealed that a significant number of Nigerian manufacturers, industries, and other bulk electricity users are avoiding the national grid due to a lack of trust and confidence in its reliability.
Speaking on Thursday at the Nigeria Electricity Liability Management Company board retreat in Lagos, Adelabu pointed out that many large electricity consumers have opted for alternative power sources, despite the national grid being a more cost-effective and dependable option.
He expressed disappointment that even though the country achieved a record generation of 5,155 megawatts in July, much of this electricity is not being utilized due to distribution challenges.
“Many bulk electricity users, including industries, have disconnected from the grid because they lost trust in its reliability. As a result, they are now relying on their own captive power plants, which are more expensive,” Adelabu stated.
This shift away from the grid comes after Nigeria implemented a 240 percent increase in electricity tariffs for Band A customers in April 2024, which has significantly raised energy costs for manufacturers, industries, and the general population.
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