NERC National Electric Regulation Commision )disclosed that the firms obtained the permits in the third quarter of 2025, authorizing them to produce electricity independently for internal use.
The firms opted to generate a combined 5.85 megawatts of electricity for their own operations, a move aimed at reducing reliance on Nigeria’s unreliable national grid. The firms cited persistent power supply shortfalls and grid unreliability.
NERC explained that due to growing demand for off grid solutions, guidelines are in place, Power plants above 1MW require NERC permits to ensure it is solely for license holder’s consumption not selling to third parties. There are guidelines when there is intention to sell to third party, to ensure transparency and customer protection.
Licensed off-grid capacity now estimated at over 6,500MW nationwide. NERC affirms issueing multiple captive permits in the third quarter to support industrial energy security, aligning with Electricity Act provisions.
NERC concluded that gas supply shortages directly contributed to reduced generation, adding that gas supply constraints directly reduced generation by 602GWh, forcing more firms to go captive, while calling for federal intervention to address sector debts and infrastructure gaps.
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