NRS joins exodus from unreliable national electricity grid

The Nigerian Revenue Service has obtained approval to generate its own electricity, marking a significant shift away from the national grid

as persistent outages continue to disrupt operations across Nigeria.

The approval, granted by the Nigerian Electricity Regulatory Commission in its fourth quarter 2025 report, allows the agency to build a 6.08 megawatt captive power plant at its headquarters in Abuja’s Central Business District. The move reflects growing frustration among major institutions over unreliable grid supply.

The decision comes as both public and private organisations increasingly adopt self generated power solutions to sustain operations. It also follows recent investments in alternative energy at key government facilities, including solar installations at the Presidential Villa.

Data from the commission shows that 11 captive power permits were issued within the period, with a combined capacity exceeding 130 megawatts. Major beneficiaries include Abuja Steel Mill Nigeria Limited and Yongxing Steel Company Limited, alongside several manufacturing firms across Abuja, Edo, Kano, and Jigawa states.

The trend highlights a deepening crisis in Nigeria’s electricity sector, where frequent grid collapses and inconsistent supply have forced businesses to depend on costly alternatives such as diesel generation. This has significantly raised production costs and weakened competitiveness.

Analysts say the decision by the revenue agency is particularly notable, as it signals that even critical government institutions can no longer rely on the central power system. The development underscores broader concerns about the sustainability of the national grid.

In addition to captive power approvals, the commission issued 31 mini grid permits with a total capacity of 8.37 megawatts, targeting underserved communities in states including Benue, Nasarawa, Cross River, Taraba, and Delta.

Experts attribute the growing shift to reforms introduced under the Electricity Act 2023, which liberalised the sector and enabled large consumers to generate their own power. While the policy offers relief to organisations that can afford it, it raises concerns about reduced revenue for distribution companies as high value customers exit the grid.

Industry figures indicate that more than 250 large scale users, including manufacturers and institutions, now generate their own electricity, producing an estimated 6,500 megawatts, which exceeds the average output of the national grid.

Observers warn that as more organisations adopt independent power solutions, the burden of unreliable electricity may increasingly fall on smaller consumers, potentially prolonging the country’s power challenges.