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This is a key move, given the billing issues faced by tertiary institutions in 2024 Four breweries and seven tertiary institutions in Nigeria have been granted permits to generate their own electricity. The Nigerian Electricity Regulatory Commission (NERC) confirmed that it has issued captive power generation permits to these businesses and universities with a total capacity of 63.36MW. “The Commission approved the grant of captive power generation permits to eleven (11) applicants (gross capacity of 63.36MW),” said NERC. The permits were granted in the third quarter of 2024, the Commission confirmed in its Q3 report released toward the end of December 2024. Captive power generation permits are issued to entities that intend to own and maintain power plants exclusively for their own consumption. That means they are not allowed to sell the electricity they generate to a third party. The permits were granted to: University of Abuja Gwagwalada, Abuja (3MW) University of Calabar & Teaching Hospital, Cross River State (7MW) University of Agriculture Micheal Okpara Umetuke, Abia State (3MW) University of Maiduguri & Teaching Hospital Main Campus, Borno State (12MW) Federal University of Agriculture, Abeokuta Main Campus, Ogun State (3MW) Federal University Gashuwa Sabon Gari, Yobe State (1.5MW) Nigerian Defence Academy, Kaduna State (2.5MW) Nigeria Breweries Plc (Aba Breweries) Aba, Abia State (5.6MW) Nigeria Breweries Plc (Ibadan Breweries) Ibadan, Oyo State (7.2MW) Nigeria Breweries Plc (Ama Breweries) Ama-Eke Ngwo, Enugu State (10.59MW) Nigeria Breweries Plc (Aba Malting Plant) Obingwa, Abia State (7.97MW) This development, particularly in the case of the universities, follows the Rural Electrification Agency (REA) announcement last September that it had signed agreements with various universities in Nigeria for the supply of more than 100MW of clean energy. Universities in Nigeria face uphill battle to pay rising electricity bills Last year, several universities in Nigeria struggled to pay their electricity bills, some of which reportedly ran into the hundreds of millions of naira per month. The University of Benin’s (in Edo State) electricity bill, for example, increased from N80 million (around $51,000) to N280m (around $180,000) per month. The News Agency of Nigeria (NAN) reported that the university’s electricity was cut after it failed to reach an agreement with the Benin Electricity Distribution Company (BEDC) over a “contentious electricity bill.” Also in 2024, the management of the University of Nigeria, Nsukka (UNN) in Enugu State confirmed that it is making efforts to generate its own power to solve its energy challenges. Local media reported that escalating electricity bills, which the university receives monthly from the Main Power Electricity Distribution Company and the Enugu Electricity Distribution Company (EEDC), had compounded their energy challenges. In August 2024, the University of Lagos (UNILAG) reported that its electricity had been cut after the Eko Electricity Distribution Company (EKEDC) disconnected it from the power grid. The university was disconnected because it failed to pay the N472 (around $303,000) million electricity bill. According to a statement from the university at the time, its electricity bill had increased from about N180m (around $115,000) a month to at least N300m (around $192,000) a month since June, when EKEDC migrated the university from Band B to Band A. Last April, NERC announced a tariff hike for Band A customers – the new rate increased to N225 ($0.17) per kilowatt-hour (kWh), up from the previous N68 ($0.052) per kWh. Band A customers are those who use 20 hours of electricity a day. |
