NERC Approves 54.94MW Captive Power for 10 Institutions as Universities Battle High Electricity Bills

The Nigerian Electricity Regulatory Commission (NERC) approved captive power generation permits for 10 institutions in the first half of 2026, allowing them to generate a combined 54.94 megawatts (MW) of electricity for their own use. Six of the approvals went to tertiary institutions looking for alternatives to the national grid as electricity costs climb.

Captive power generation lets an organisation run a power plant exclusively for its own consumption. It cannot sell the electricity to third parties.

Q1 Approvals: 40.82MW Across Seven Permits

NERC issued seven permits in the first quarter of 2026 covering a combined 40.82MW. The approved institutions were:

Modibbo Adama University, Yola, Adamawa State: 5MW.

Federal University Dutsin-Ma, Katsina State: 1.9MW.

Federal University of Lafia, Nasarawa State: 1.6MW.

University of Uyo, Akwa Ibom State: 2.9MW.

University of Port Harcourt, Rivers State: 10.7MW.

University of Port Harcourt Teaching Hospital, Rivers State: 10.7MW.

Nigerian Breweries Plc, Kaduna State: 8.02MW.

Q2 Approvals: 14.12MW in Three Permits

Three additional permits were granted in the second quarter for a total of 14.12MW. BUA Cement Plc in Sokoto State received approval for 12MW. African Consulting Office Energy Solutions in Jigawa State got 1MW, while Power Gas Ebedei Limited in Delta State was authorised to generate 1.12MW.

Why Institutions Are Going Off-Grid

The approvals come as some tertiary institutions struggle to meet electricity bills after tariff increases for Band A customers. Several universities have suffered power disruptions after accumulating bills they could not pay, triggering protests and extended holidays at some campuses while managements negotiate payment arrangements with distribution companies.

Rising grid costs have pushed institutions to explore independent generation to keep essential services and academic work running. Many have relied on diesel-powered generators, a costly option that adds to running expenses.

Solar Push Through Energizing Education Programme

Meanwhile, the Federal Government is promoting solar power for universities through the Rural Electrification Agency (REA). REA Managing Director Abba Aliyu said 22 federal universities and three affiliated teaching hospitals have been connected to solar electricity under the agency's Energizing Education Programme.

Minister of Education Dr Maruf Tunji Alausa said the initiative was designed to give universities dependable and sustainable electricity for teaching, research, student accommodation and healthcare services. He noted that unreliable power supply has disrupted academic activities and scientific research for years while placing extra financial pressure on university administrators.

Alausa said dedicated renewable energy systems would cut electricity expenses and free up more resources for research, academic infrastructure and essential equipment.

For Nigerian businesses, the shift matters. Companies named in these approvals, from breweries to cement producers, are locking in their own supply rather than betting on the grid. If more manufacturers follow, demand for grid power from large commercial customers could weaken, with implications for how distribution companies price electricity and recover costs.