By Awyetu Asabe Hope
Growing grid instability and liquidity challenges in Nigeria’s power sector may push more private companies to abandon the national grid for captive power generation.
No fewer than 20 firms reportedly exited the grid between January and September 2025, citing recurring collapses and unreliable supply. The latest nationwide blackout— the second in two weeks — further disrupted homes and businesses.
Although the Nigerian Independent System Operator (NISO) said supply had been restored, stakeholders argue that frequent disturbances expose deep structural weaknesses in transmission infrastructure.
Industry sources estimate that over 60 per cent of companies have reduced reliance on grid power, turning instead to diesel, gas and solar alternatives to sustain operations.
The Manufacturers Association of Nigeria warned that persistent failures are eroding industrial competitiveness and called for an independent forensic audit of the grid’s infrastructure and management.
Analysts say the exit of high-paying industrial customers threatens the financial viability of the debt-burdened Nigerian Electricity Supply Industry (NESI), worsening liquidity constraints for generation (GENCOs), transmission and distribution companies (DISCOs).
Chinedu Bosah of the Coalition for Affordable and Regular Electricity said the exodus reflects deep dissatisfaction with privatisation and unreliable supply, warning that higher self-generation costs will ultimately be passed on to consumers.
Similarly, Adeola Samuel-Ilori of the All Electricity Consumers Forum said investors may hesitate to commit capital amid worsening sector realities.
Uket Obonga of the Nigeria Electricity Consumers Advocacy Network cautioned that rising production costs from alternative power sources could fuel inflation and weaken local industries.
Stakeholders warn that without urgent structural reforms and infrastructure investment, the power sector risks deeper financial strain and declining investor confidence.
