The Minister of Power, Adebayo Adelabu, has revealed that generating electricity using petrol now costs private entities up to N750 per kilowatt-hour (kWh) due to the soaring price of petrol.
For those using diesel-powered engines, the cost rises even higher, reaching N950 per kWh.
At a recent event in Lagos, Adelabu highlighted that these figures far exceed the N209/kWh tariff paid by Band A electricity customers, underscoring that self-generation is significantly more expensive than grid-supplied power.
He emphasized that while some customers have expressed dissatisfaction with the Band A tariff, they are still paying less than they would if relying on petrol or diesel generators.
Adelabu also addressed recent criticisms from the media, which described the rising revenues of power distribution companies (Discos) as an additional burden on consumers. He clarified that the increased revenue is not an extra financial load but rather a shift in spending.
“There is a section of the media saying this revenue is an additional burden on consumers. No, it is not. It is simply a reallocation of resources from what they previously spent on petrol and diesel. Now, they are paying for a stable power supply,” he explained.
The minister noted that in 2023, while the power sector generated N1 trillion in revenue, Nigerians spent a staggering N16.5 trillion on petrol and diesel to run generators.
He argued that with a more reliable electricity supply, households and businesses are spending less on fuel.
“Today, with the cost of petrol at N1,000 per litre, generating a kilowatt-hour of electricity using a petrol generator costs about N750, and for diesel, it’s around N950,” he said. “Consumers now have the option to pay N209 for stable grid electricity, which is far more economical.”
Adelabu compared the situation to a consumer choosing between two options, saying: “Power consumers are like a bride who has experienced two matrimonies. If they are honest, they know which husband to stay with.”
He urged electricity consumers to support the ongoing reforms in the power sector and work with Discos to maintain the current improvements and avoid reverting to costly fuel-powered generators.
The minister also reaffirmed his commitment to raising Nigeria’s power generation capacity to 6,000 megawatts by the end of the year, calling for continued consumer support as the sector undergoes commercialization to attract investment.
