- He reiterated the government’s target to raise power generation to 6,000 megawatts by the end of the year
Nigeria’s Minister of Power, Adebayo Adelabu, has warned that generating electricity privately using petrol or diesel is significantly more expensive than using grid power, as rising fuel prices continue to strain consumers.
Adelabu revealed that generating one kilowatt-hour of electricity with petrol now costs up to N750, while diesel-powered generators push the cost even higher to N950 per kilowatt-hour. By comparison, the current tariff for Band A customers on the national grid is N209 per kilowatt-hour.
Speaking at an event in Lagos, the minister acknowledged public resistance to the Band A tariff but insisted that, despite this, consumers recognize that it remains cheaper than self-generating power with fuel.
“There is a misconception that higher revenues for power distribution companies mean an extra burden on consumers. It’s not an additional cost; it’s a reallocation of what they would have spent on petrol or diesel,” Adelabu explained.
He pointed out that in 2023, the power sector generated N1 trillion in revenue, while a staggering N16.5 trillion was spent on fuel to run private generators.
“With a more stable power supply today, many households no longer rely on petrol or diesel for power. At N1,000 per litre of petrol, generating a kilowatt-hour of electricity costs N750, and for diesel, it’s N915,” Adelabu said, urging consumers to support electricity distribution companies in sustaining ongoing reforms.
He reiterated the government’s target to raise power generation to 6,000 megawatts by the end of the year, but admitted that frequent grid collapses could hinder this ambition.