Nigeria’s Minister of Power, Adebayo Adelabu, has revealed that Nigerians collectively spent N16.5 trillion on diesel, petrol, and generators in 2023.
Speaking at the 2024 Nigeria Oil and Gas conference in Abuja, Adelabu emphasized that despite this massive spending, the formal power sector only generated N1 trillion in revenue last year, excluding informal sector expenditures.
He highlighted the challenges faced by industries operating off the grid, which contributed significantly to the informal sector’s expenditure of almost N20 trillion. Adelabu proposed that redirecting even a quarter of this informal spending toward the formal power sector could generate an additional N5 trillion in revenue, potentially facilitating a more reliable 24/7 electricity supply nationwide.
He underscored the cost disparity between various energy sources, noting that industries on the national grid pay N206/kWh, while those using gas-powered generators pay N290/kWh. In contrast, users of petrol generators incur costs of around N450/kWh, and diesel users spend upwards of N900/kWh, making grid electricity the most economical option for industrial productivity.