Adebayo Adelabu, Nigeria’s Minister of Power, has revealed that the cost of generating electricity using petrol and diesel-powered generators has skyrocketed, with one kilowatt-hour (kWh) of electricity from petrol generators now costing as much as N750, and diesel-powered generation costing N950 per kWh. Adelabu made the statement during a recent event in Lagos, highlighting the significantly higher costs compared to the N209/kWh charged to Band A electricity customers.

The minister emphasized that while some customers had previously opposed the Band A tariff, it remains far more affordable than generating their own power with fuel-powered generators. “At today’s fuel prices, generating a kilowatt-hour of power using a petrol generator costs about N750, while diesel generation costs about N950 per kilowatt-hour,” Adelabu explained. He noted that, by comparison, the N209/kWh charged by the electricity distribution companies (DisCos) for Band A consumers is a more cost-effective option.

Adelabu pointed out that in 2023, Nigeria’s power sector generated N1 trillion in revenue, while consumers spent a staggering N16.5 trillion on petrol and diesel to run generators due to unstable electricity supply. However, he stressed that the country’s electricity supply has become more stable, reducing the need for consumers to rely on costly fuel-powered generators.

“Today, with the more stable supply, many people are no longer spending on fuel—neither petrol nor diesel. Consumers have experienced the high cost of self-generated power and now know which option is more sustainable,” the minister said, likening power sector consumers to “a beautiful bride” who has experienced two different choices.

Adelabu called on consumers to support the ongoing reforms in the electricity sector and cooperate with DisCos to sustain the improvements. He also highlighted the government’s focus on commercializing the power sector to attract investment and ensure long-term stability.

With these reforms, Adelabu aims to reduce the country’s reliance on costly and polluting fuel generators and encourage a shift toward a more reliable national electricity grid.