Nigerians Spent N16tn On Fuel And Generators – Minister Of Power

Nigerians spent a total of N16.5 trillion on diesel, petrol, and generators to generate energy in 2023, the Federal Government disclosed on Tuesday, July 2.

It was also discovered that the official power industry, which includes electricity generating, transmission, and distribution businesses, generated N1 trillion in revenue last year, while power customers spent almost N16 trillion in the informal sector.

Adebayo Adelabu, Minister of Power, revealed this at the ongoing 2024 Nigeria Oil and Gas conference in Abuja but added that electricity consumers in the Band A category now have up to 24 hours of power supply.

He said, “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 in self (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 spending 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 distribution companies. Just N1tn formal revenue. But the informal spending on generators, diesel, and 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.”

The minister stated that the government is now working hard to earn the trust of power consumers, emphasising that it is preferable to spend on energy delivered by the national grid because it is less expensive than diesel or gasoline-powered generators.

He continued: “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.”

A Gentle Reminder: Every obstacle is a stepping stone, every morning; a chance to go again, and those little steps take you closer to your dream.

Nnamdi Okoli