By Seyi Babalola
Adebayo Adelabu, Minister of Power, said that in 2023, Nigerians spent a total of N16.5 trillion on fuel, diesel, and generators for electricity generation.
Recall that the power industry, which includes energy generating, transmission, and distribution businesses, had a total income of N1 trillion last year.
According to the Power Minister, informal power customers spend more than N16 trillion.
Adelabu claimed during the 2024 Nigeria Oil and Gas conference in Abuja, adding that customers in the Band A category of electricity consumption can expect a continuous supply of electricity for up to 24 hours.
“If you know how much our people spend buying diesel, petrol, generators, and servicing them in a year; the last study we had in 2023, a total of N16.5tn was spent on this (power) generation.
“Even a number of the industries are off the grid. They now have their captive power between their environments with gas-powered generators.
“So spendings in this sector out of the grid is close to N20tn. And let me blow your mind, the revenue for the entire industry, the grid, I mean the formal power sector was just N1tn for 2023 that goes to the generation companies, transmission companies and the distribution companies. Just N1tn formal revenue. But the informal spendings on generators, diesel, petrol, was close to N20tn.
“Even if it is just a quarter of that is put in the official power sector, we are talking about incremental revenue of N5tn that will bring the sector’s revenue to N6tn, sincerely we are going to have something close to uninterrupted 24/7 power supply in Nigeria.
“That is what we are working on to ensure that that trust is back, that that confidence is back. And all the manufacturing companies that are doing self-generation can cut it off and reconnect to the national grid because it is the cheapest source.
“As at the last study, Band A customers are enjoying uninterrupted supply and pay N206. For the companies that have their captive power using gas, they pay about N290/kwh.
“For those that are using petrol generators, it is about N450 per kilowatt-hour. And for those using diesel to power their generators, it is upward of N900. So it is still the cheapest, most efficient and the least cost for our productive activities.”
