Nigerian Revenue Service Builds Own Power Plant

ABUJA, Nigeria — The Nigerian Revenue Service has secured a captive power generation permit for a 6.08-megawatt plant at its new headquarters in the Central Business District of Abuja, joining a growing list of federal agencies and private firms exiting the troubled national grid.

NaijaChoice News reports that the approval, contained in the Nigerian Electricity Regulatory Commission’s fourth quarter 2025 report, comes as persistent outages continue to disrupt government operations and business activities nationwide. The revenue agency unveiled its state-of-the-art headquarters earlier this week, and the power plant forms part of efforts to ensure uninterrupted service.

This development follows the Aso Rock Presidential Villa’s recent multi-billion naira investment in solar power. It signals a broader wave of self-help measures, with both public institutions and private companies losing faith in the national grid after repeated system collapses.

In the same quarter, NERC approved 11 captive power permits with a combined capacity exceeding 130 megawatts. Prominent recipients include Abuja Steel Mill Nigeria Limited (50MW) and Yongxing Steel Company Limited (45MW) in Edo State. Others are West Africa Limited (1.25MW) in Abuja, Vinylon Footwear Industry Limited (6MW) in Jigawa, and several Kano-based firms including Standard Plastic Industry Nigeria Limited (7MW).

The irony is not lost on observers: the very agency responsible for mobilising government revenue has opted out of the central electricity infrastructure it helps fund. Many industries have long complained that erratic supply forces them to rely on costly diesel generators, inflating production costs and hurting competitiveness.

Beyond captive plants, NERC issued 31 mini-grid permits adding 8.37 megawatts, mostly in rural states like Benue, Nasarawa, Cross River, Taraba and Delta. The commission also certified additional meter service providers to tackle estimated billing and boost collection efficiency.

Analysts trace the surge to the Electricity Act 2023, which liberalised the sector and eased independent power projects for large consumers. While this offers immediate relief to those who can afford it, experts warn it weakens the revenue base of distribution companies as high-value customers exit.

More than 250 manufacturers, tertiary institutions and large commercial entities have now partially or fully abandoned the national grid. Together, they generate an estimated 6,500 megawatts—surpassing the grid’s average supply—with the Dangote Group alone producing about 1,500 megawatts for its operations.

Energy expert Adetayo Adegbemle told NaijaChoice News that unless bulk consumers return to the grid, the sector will remain trapped in a liquidity crisis. Ordinary Nigerians, he added, may continue to bear the brunt as the central system loses both demand and investment momentum.

Self-generated power has become a strategic necessity rather than a temporary fix in Nigeria’s power-deficient economy. With industrial estates in Lagos and Ogun, shopping malls in major cities and high-end estates all turning to captive or hybrid systems, the national grid’s future looks increasingly uncertain.