Nigeria's national grid has been plagued by persistent outages, leading over 200 firms, including Dangote Group, to abandon the grid and generate their own electricity. The firms, which also include the Nigerian National Petroleum Company Limited (NNPCL), Total, and about 250 manufacturers and academic institutions, have collectively produced over 6,500 MW of power, surpassing the national grid's output of 4,500 to 5,000 MW.

The recurring grid collapses are attributed to ageing facilities, lack of maintenance, inadequate investment in the power sector, and vandalization of power facilities. This has led to disruption of business activities and delays in healthcare services. In 2024 alone, Nigeria experienced 12 grid collapses, with the 12th collapse occurring on December 11, 2024.

Despite the establishment of an inter-sectoral investigative committee to examine the causes and potential solutions to Nigeria's recurring grid failures, the problem persists. The Honourable Minister of Power, Chief Adebayo Adelabu, has expressed concern over bulk electricity consumers leaving the national grid for self-generated power, stressing that grid connection is more reliable.

The Dangote Group is one of the largest captive power generators in Nigeria, with Dangote Industries Limited generating about 1,500 MW of electricity. The Dangote refinery alone operates a 435 MW power plant, sufficient to meet the entire power requirement of the Ibadan Electricity Distribution Company. Aliko Dangote, president and chief executive officer of Dangote Group, has emphasized that the company does not rely on the national grid but produces power solely for self-consumption.

According to the Nigerian Electricity Regulatory Commission (NERC), a total of 249 firms and institutions have been granted permits to generate captive power, collectively producing around 5,180 MW. Other firms that generate their own power include MTN Nigeria, Shell, Nigerian Breweries Plc, Flour Mills of Nigeria Plc, Mobil Producing Nigeria Unlimited, Kaduna refinery, Warri refinery, Lafarge Cement Wapco Nigeria Plc, Procter and Gamble Nigeria Limited, and Bank of Industry Ltd.

Several universities have also opted for captive power generation, including the University of Lagos, Abubakar Tafawa Balewa University, Federal University Ndufu-Alike IKWO, Usmanu Danfodiyo University, Obafemi Awolowo University, Federal University of Petroleum Resources, Nnamdi Azikiwe University, Awka, Federal University of Agriculture, Makurdi, Bayero University, Kano, and University of Benin.

Stakeholders have cautioned that grid collapses will persist unless urgent issues like outdated equipment, inadequate gas supply, poor coordination, lack of reserves, and other challenges are addressed. The Power Minister has lamented that despite generating over 5,155 MW, distribution companies are not using the power allocated to them due to fears of debt from low recovery rates.

The shift towards captive power generation has significant implications for Nigeria's energy sector, highlighting the need for urgent reforms to address the persistent power outages and grid collapses. As the country struggles to meet its electricity needs, the reliance on captive power generation is likely to continue, with major firms like Dangote Group leading the way.

In the broader context, Nigeria's energy crisis persists, with over 500 million people in Africa still lacking access to electricity. The situation underscores the need for sustained investment in the power sector, as well as innovative solutions to address the continent's energy challenges.