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Nigerian Breweries and Academic Institutions Secure Captive Power Permits Amid Power Crisis

Written by Agboola Oluwafemi on January 9, 2025

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Amid rising electricity costs and frequent power fluctuations, Nigerian Breweries Plc has received approval to generate its own power at facilities in Abia, Oyo, and Enugu states. Collectively, the company will produce up to 41 megawatts of electricity across its four power stations.

The Nigerian Electricity Regulatory Commission (NERC) disclosed this development in its third-quarter 2024 report, highlighting a growing trend of companies seeking alternatives to the national grid following the enactment of the Electricity Act 2023.

NERC explained that captive power generation permits are granted to entities intending to operate and maintain power plants solely for their consumption. Under these permits, electricity generated cannot be sold to third parties.

In total, NERC approved 11 captive power generation permits in the quarter under review, amounting to a combined capacity of 63.36 megawatts. Among the beneficiaries were six Nigerian universities and the Nigerian Defence Academy, which also secured permits to generate electricity independently.

Universities and Institutions Granted Permits

– University of Abuja : 3MW
– University of Calabar & Teaching Hospital, Cross River State: 7MW
– University of Agriculture, Michael Okpara, Umudike, Abia State: 3MW
– University of Maiduguri & Teaching Hospital, Borno State: 12MW
– Federal University of Agriculture, Abeokuta, Ogun State: 3MW
– Federal University Gashuwa, Yobe State: 1.5MW
– Nigerian Defence Academy, Kaduna: 2.5MW

Last year, the Minister of Power, Chief Adebayo Adelabu, announced that the Federal Government had approved electricity subsidies for tertiary education and healthcare institutions. This intervention aimed to address the financial challenges faced by these institutions after the removal of electricity subsidies for customers in Band A feeders.

While Band A customers began receiving a minimum of 20 hours of electricity daily, universities and hospitals reported significant increases in their monthly electricity bills.

– The College of Medicine at the University of Lagos and the Lagos University Teaching Hospital reported a joint bill of ₦280 million for May, up from less than ₦100 million previously.
– The University of Lagos saw its monthly bill jump from ₦180 million to ₦300 million.
– The Federal University of Technology, Akure, experienced a rise from ₦20 million to ₦60 million.
– At the University of Benin, monthly tariffs increased from ₦80 million to ₦250 million.
– Babcock University in Ogun State reported a ₦300 million electricity bill for May, with its Vice-Chancellor, Prof. Ademola Tayo, warning that such costs posed a severe threat to quality education in Nigeria.

Challenges and the Shift to Captive Power

In addition to high electricity tariffs, many institutions face unreliable power supply, frequent fluctuations, and repeated grid collapses. With captive power permits, Nigerian Breweries and academic institutions now have a pathway to ensure stable electricity for their operations.

During the same period, NERC certified seven meter service providers, five meter installation companies, and two meter manufacturers. The commission also issued 22 permits for Meter Asset Providers and released 50 orders to guide licensee activities.

This shift toward captive power generation reflects a growing need for self-reliance and stability in the face of Nigeria’s persistent energy challenges.