Nigerian Breweries Plc has received approval from the Nigerian Electricity Regulatory Commission (NERC) to generate captive power at its facilities in Abia, Oyo, and Enugu states. With this move, the company is set to produce up to 41 megawatts (MW) of power across four stations, addressing its energy needs amid the high cost of electricity and persistent power outages.
The permits, granted in the third quarter of 2024, align with the trend of businesses and institutions opting for self-generation following the signing of the Electricity Act 2023. The Act has provided companies with the legal framework to leave the national grid and generate their own power.
According to NERC, captive power permits are issued to entities generating electricity exclusively for their own use, with no provision for selling to third parties. The commission disclosed that it approved 11 such permits in 2024, enabling a total of 63.36MW in capacity.
Educational Institutions Follow Suit
In addition to Nigerian Breweries, several academic institutions, including six universities and the Nigerian Defence Academy (NDA), have also obtained captive power permits. These approvals aim to alleviate the challenges of skyrocketing electricity bills and unreliable supply faced by tertiary institutions.
The approved capacities include:
• University of Abuja: 3MW
• University of Calabar & Teaching Hospital, Cross River State: 7MW
• Michael Okpara University of Agriculture, Umudike, Abia State: 3MW
• University of Maiduguri & Teaching Hospital, Borno State: 12MW
• Federal University of Agriculture, Abeokuta Main Campus, Ogun State: 3MW
• Federal University Gashuwa, Yobe State: 1.50MW
• Nigerian Defence Academy, Kaduna: 2.50MW
The initiative comes on the heels of complaints by universities and hospitals over skyrocketing electricity bills following the removal of subsidies for customers on Band A feeders. Despite an upgrade in daily electricity supply to a minimum of 20 hours, institutions faced financial strain due to tariff hikes.
For instance, the College of Medicine of the University of Lagos and the Lagos University Teaching Hospital jointly received a May 2024 bill of N280 million, a sharp increase from their previous bills of less than N100 million. Similarly, the University of Benin saw its electricity costs surge from N80 million to N250 million monthly, while the Federal University of Technology, Akure, experienced a jump from N20 million to N60 million.
A Step Toward Stability
With captive power permits, entities like Nigerian Breweries and the listed institutions are expected to achieve energy stability, shielding themselves from grid disruptions and high tariffs.
In the same period, NERC certified additional Meter Service Providers, meter installer companies, and meter manufacturers, while issuing 22 permits for Meter Asset Providers and 50 regulatory orders to guide licensees’ activities.
These developments reflect an ongoing shift in Nigeria’s energy landscape, driven by the need for reliable and cost-effective electricity supply.
