Nigerians spend around N30 trillion yearly on self-generated, off-grid electricity due to inadequate public power supply. The nation could save more than three-quarters of this spending with investments in the national grid system, increasing public power supply revenue to N6 trillion for stable power.
Minister of Power, Adebayo Adelabu, highlighted the power sector's challenges at the 2024 Nigerian Oil and Gas (NOG) conference in Abuja. He noted that in 2023, Nigerians spent N16.5 trillion on diesel, petrol, and generator maintenance. Adelabu emphasized that boosting national grid revenue by N5 trillion could ensure 24/7 electricity nationwide.
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Adelabu explained that while informal spending on power generation was nearly N30 trillion, the formal sector's revenue was just N1 trillion in 2023. He stressed that connecting more users to the grid could increase revenue and improve power supply reliability, noting that 'Band A' tariff customers already enjoy uninterrupted power at a lower cost than private generation.
Mr. Adewale Fayemi of Total Energies urged the Federal Government to create a commercial framework for investment in renewable energy. He pointed out that confidence in recouping investments is crucial, citing stalled solar projects that could have added 1 gigawatt of renewable power to the grid. Fayemi emphasized the need for a strategy that allows investors to recover their capital with reasonable returns.
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