The Federal Government disclosed that Nigerians spent a colossal N16.5 trillion on diesel, petrol, and generators for power generation in 2023.
This sum vastly overshadowed the formal power sector’s revenue, which barely reached N1 trillion.
During the 2024 Nigeria Oil and Gas Conference in Abuja, Power Minister Adebayo Adelabu highlighted the massive financial drain on the informal sector.
“Nigerians are pouring trillions into self-generated power,” he stated, noting that many industries have resorted to off-grid, gas-powered generators.
Minister Adelabu emphasized the stark contrast: “The informal sector’s spending on power is nearly N20 trillion, while the formal sector struggles with just N1 trillion in revenue.”
He projected that redirecting just a fraction of these funds to the formal sector could significantly enhance Nigeria’s electricity supply.
Currently, Band A customers, who experience up to 24-hour power supply, pay N206 per kilowatt-hour, far less than the N450 and N900 paid by those relying on petrol and diesel generators, respectively.
“We aim to rebuild trust and confidence in the national grid,” Adelabu affirmed, “to make it the preferred and most economical power source for all Nigerians.”
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