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With a remarkable vote of no confidence in the Nigeria national network, six federal universities, the MTN Nigeria telecommunications giant, the Nigerian Defense Academy (NDA) and another 16 companies have obtained regulatory approval to exit the national network, citing an unreliable energy feeding and unreliable potential costs.
The data of the Nigerian Electricity Regulatory Commission (DEIGN) revealed that 24 institutions and companies have obtained generation of energy generation in captivity in 2024, allowing them to produce their electricity independently.
The move highlights the growing disillusionment with the National Grid, which continues to suffer frequent collapses and float between a miserable of 3,000 and 4,500 megawatts, in front of the needs of the 200 million people in Nigeria.
Among the universities that abandon the grid there are the University of Abuja (3MW), the University of Calabar and its teaching hospital (7mw), federal university of agriculture, Abakuta (3mw), Michael Okpara University of Agriculture in the State Abia (3mw), University of Maiduguri and his hospital for teaching (12mw) (10 MW).
University officials say that the decision was necessary to guarantee learning, research and uninterrupted clinical services.
“Stable electricity is essential for our operations, from the workshops of students and in the Data Center and Surgical Theaters,” an administrator observed.
Mtn Nigeria, who manages a vast network of telecommunications across the country, has also embraced prisoner power.
The company obtained the permits to generate 15.94 million electricity for its operations only in Lagos. Experts in the sector affirm that the move will help MTN to guarantee the time of activity of the network, avoid service interruptions and reduce diesel expenses.
Heavy producers and industries have not been excluded. Steelmaker African Steel Mills in Lagos (20 MW), producer of Ceramiche Ceramiche of West Africa in Kogi (10 MW) and Royal (4MW) engineered stones are among the companies moving from public food.
The food and drinks sector is also taking measures to become independent of energy. The Nigeria Breweries Plc has obtained multiple permits for structures in ABA (5.6 MW), Ibadan (7.2 MW), Amma-enugu (10.59 MW) and its Malto ABA system (7.97 MW).
Other companies that do the switch include Sweetco Foods in Oyo (1.5 MW), Armilo Plastics in Lagos (1.13 MW), quantum card in Lekki (7mw) and Saltry International in Oyo (1.1mw).
Ro-Marong Nigeria Ltd in Lagos (4.4 MW) and the NDA in Kaduna (2.5 MW) are also generating their electricity, indicating that the problem cuts between sectors and safety concerns.
Energy experts say that the mass exit of these institutions exposes dilapidated infrastructures and governance challenges in the Nigeria power sector.
“When the Nigerian defense academy does not trust the national network anymore, we are dealing with a full -blown systemic failure,” said Yemi Adebayo, consultant for the government of energy.
Adetayo Adegbenle, executive director of Powerup Nigeria, warned that this growing trend could paralyze the national network by removing large commercial consumers, which generally act as “anchor tenants” for electrical distribution companies (Dicos).
“These companies help to balance the demand and demand. Without them, the network is supported only by residential users, which is unsustainable,” said Adegbenle.
With the great players disappeared, the burden now falls on the band to customer: residential users have promised up to 20 hours of daily power but receive much less. In April 2024, Nerc approved a band a tariff excursion to N206.80/kWh, triggering the indignation between customers.
“It’s as if we were punished to stay on the grid,” Ifeanyi Nwosu said, a banker based in Lagos. “We are paying premium rates for the unreliable offer while large companies leave.”
Analysts say that band customers are used to connect the entrance gap left by industrial users departing.
“The network has never been designed to work profitably only on residential customers,” said Aisha Mohammed, an energy researcher at the Center for Development Studies based in Lagos.
“They consume less, often predefined on bills and sometimes they are not even measured. The economy simply does not add up.”
The interested parties are now making the federal government to offer incentives that could attract companies to the network, including reliable offer guarantees and economic rates.
“Without strategic reforms, we risk transforming the prisoner generation into a rule for the few who can afford it, leaving millions trapped in darkness,” warned the political consultant Aisha Salami.
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