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How Embedded Generation Can Transform Nigeria’s Power Landscape

How Embedded Generation Can Transform Nigeria’s Power Landscape

Tola Talabi

If you’re reading this, chances are you’ve experienced a power outage today. Maybe you’re running on a generator, or lucky enough to have solar and battery backup. Either way, you know Nigeria’s electricity crisis affects every aspect of life, from the cost of doing business to the quality of healthcare and education our families receive.

Every major leap in Nigeria’s economy has been triggered by a structural shift. Just as telecoms and banking were revolutionized through liberalization and private innovation, the power sector is now on the brink of a similar transformation, this time through embedded generation.

Learning from Our Success Stories: Telecom and Banking

The Telecom Revolution: From Scarcity to Ubiquity

In the 1990s, getting a phone line meant bribes, long waits, and limited access. But the 2001 GSM revolution changed that. Within a decade, subscriptions jumped from 500,000 to over 100 million. The key was not government investment, but liberalization and private capital. MTN, Glo, and Airtel built the backbone, and telecoms now contribute over 10 per cent of GDP.

The Banking Revolution: From Elite Privilege to Mass Access

Finance used to be the domain of foreign banks and elites. But consolidation and fintech changed that. Today, services like PiggyVest and PalmPay make financial access ambient, so much so that market traders in Aba are able to transact as easily as bankers in Ikoyi. Like telecoms, banking became invisible infrastructure.

Power: The Missing Piece

Despite our size and ambition, Nigeria faces a power supply gap of 30–40 GW, generating only 4–7 GW daily, woefully inadequate for a nation of 227 million people. By comparison, South Africa produces nearly 60 GW and Egypt about 61 GW.

The consequences are profound. Self-generation through diesel or petrol generators costs three to five times more than grid power, draining resources that could fuel growth. Businesses lose an estimated 20–30 per cent of potential output due to frequent outages, while manufacturers and tech firms struggle to scale without consistent supply. Hospitals face particular risks, relying heavily on costly backup systems that undermine service quality. Without reliable electricity, every other sector: fintech, agriculture, education, healthcare, remains constrained, unable to reach its full potential.

The Embedded Generation Opportunity

Embedded generation is power produced within the distribution network, right where it’s needed. Instead of relying on transmission from distant plants through the fragile national grid, embedded plants serve local areas directly.  Why is this game-changing?

Nigeria’s power sector has three main links: generation, transmission, and distribution, each facing its own persistent challenges. Generation is often hampered by gas supply constraints and underutilized capacity. Transmission remains the weakest link, with an aging, unreliable grid that suffers frequent collapses. Distribution, though improved in recent years, still struggles with infrastructure losses and revenue collection.

Embedded generation offers a way to bypass the most fragile part of the chain, transmission, altogether. By producing power within the distribution network, it eliminates the risk of grid collapse disrupting supply. Even when the national grid fails, embedded systems can continue delivering electricity to consumers.

Elektron’s Approach: Ring-Fencing for Reliability

At Elektron Energy, we’ve pioneered a model that “ring-fences” specific commercial and industrial clusters with dedicated embedded generation. This means creating power islands that can operate independently of the national grid while still being connected to it for backup and optimization. Here’s how it works in practice:

Victoria Island Example

Our 30MW Victoria Island Power Project, due in Q2 2026, will deliver uninterrupted power to Lagos’s premier business hub, home to banks, multinational corporations, hotels, and high-end residential complexes . Built through Victoria Island Power Ltd (VIPL), it exemplifies how bankable, large-scale embedded generation is possible in Nigeria. Wärtsilä, our EPC partner, will supply three 10MW gas engines and manage operations. Their modular, reliable technology is tailored to Nigeria’s needs.

When the grid fails or becomes unreliable, the embedded plant ramps up to meet local demand. Customers get the best of both worlds: grid power when available, and guaranteed backup when it’s not.

Industrial Clusters: Even Greater Impact

Embedded generation is even more critical for industrial zones. Places like Oba Akran in Ikeja, home to manufacturers like Mouka Foam and Michelin, lose millions during outages. Consistent power enables full-capacity production, job creation, and economic growth. Similarly, Kano’s Tokarawa Industrial Area hosts over 300 manufacturers. Reliable local power could boost their competitiveness and export potential.

Partnering with DISCOs: A Win-Win Model

Embedded generation doesn’t compete with DISCOs, it strengthens them. Our model creates public-private synergy by enabling developers to invest in vital infrastructure upgrades such as transformers and smart grids. DISCOs, in turn, gain new revenue streams from wheeling charges and, in some cases, equity stakes in the projects. More reliable power leads to higher customer satisfaction and better payment rates, while reducing pressure on the national transmission network. Our partnership with Eko Disco for the Victoria Island project exemplifies this approach; they recognised that only private investment could address challenges beyond their direct control.

Financing Innovation: Unlocking Capital

Beyond technology, financing is crucial. The VI Power Project sets a precedent for how private capital and guarantees can unlock large-scale energy infrastructure.

InfraCredit’s guarantee bridges the trust gap between developers and financiers, making long-term naira loans viable and aligning with infrastructure’s extended cash flow timelines, solving the mismatch created by short bank tenors.

Complementing this, ARM-Harith’s $250 million private equity backing brings not only capital but also strategic expertise, with a focus on energy and impact that makes them an ideal partner for scaling embedded generation nationwide. Additional support from the Nigeria Sovereign Investment Authority, Bank of Industry, FBNQuest Merchant Bank, and Stanbic IBTC Infrastructure Fund further validates the strength and credibility of the model.

Government Support: Enabling the Shift

The regulatory framework is finally catching up. In 2024, the Nigerian Electricity Regulatory Commission (NERC) mandated DISCOs to procure 398MW from embedded generation, at least 10 per cent of their allocated load.

This signals clear intent: private innovation is now central to national energy strategy. Like GSM licensing in 2001, it’s a shift from monopoly to market-driven growth.

Economic Impact: Beyond Just Keeping the Lights On

The benefits go far beyond keeping the lights on. In manufacturing, embedded power can cut energy costs by as much as 70 per cent, making local products more competitive. In services, industries like data centres and digital platforms depend on round-the-clock power to operate. For small businesses, lower energy costs free up funds for growth and hiring. Reliable electricity also draws foreign manufacturers and investors, who see consistent power as a key factor in investment decisions. 

Global Parallels: Lessons from Global Success Stories

Nigeria isn’t the first country to face these challenges. Bangladesh raised electricity access from 47 per cent to 95 per cent in just a decade using embedded systems. In India, industrial clusters with dedicated power now lead in pharmaceuticals and textiles.

The Philippines uses embedded generation to sustain manufacturing and tourism in off-grid areas. The common thread: local power solutions + private investment + enabling policy.

The Path Forward

For embedded generation to drive Nigeria’s next economic leap, it must scale quickly. Victoria Island is just the start, Lagos, Kano, Port Harcourt and other cities need similar projects. Financing must be tailored, with DFIs and banks offering long-term products. Policy from NERC  and State Regulatory Commissions  should stay consistent and enabling. Smart technology—storage, demand management and efficiency—must be built in. And we must cultivate the skilled workforce of technicians and engineers needed to operate and expand the sector.

Time Is Running Out

Nigeria’s population and economic ambitions are outpacing our infrastructure. Every year without reliable power is a year of lost opportunity.

But the pieces are finally in place: the technology, capital, partners, and political will. The only thing left is action, fast and decisive.

Because the next great Nigerian revolution isn’t digital. It’s electrical. And until power becomes as invisible and reliable as the network behind your calls or the code behind your bank app, every other innovation is building on sand.

At Elektron Energy, we’re not just building plants. We’re laying the electrical foundation for Nigeria’s next chapter.

The question is whether Nigeria will seize this opportunity quickly enough to maintain its position as Africa’s leading economy, or whether we’ll watch other countries leapfrog ahead while we remain trapped in the cycle of blackouts and generators. 

The choice is ours. The time is now!

•Tola Talabi is the Managing Director and Co-CEO of Elektron Energy, a leading Nigerian energy infrastructure development company.

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Tola Talabi If you’re reading this, chances are you’ve experienced a power outage today. Maybe you’re running on a generator, or lucky enough to have solar and battery backup. Either
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THE BUMPY ROAD TO SELF SUFFICIENCY

THE BUMPY ROAD TO SELF SUFFICIENCY

Africa has to do more to make agriculture worth the while, argues 

AYUB O. MOHAMMED

Considering the existing cultures and heritages, Africa is the richest continent in the world beyond monetary value. Nigeria is at the forefront.It is a land of many resources. Amongst these gifts possessed by Nigeria and other neighboring countries are arable land, crude oil, limestone, etc. Efficient use of these materials can quicken economic stability and subsistence. Essentially, nourished and healthy intake of food is vital to the growth of all.

Nonetheless, agriculture is not limited to consumption. It cuts across various economical divisions: a source of revenue generation, occupation, a means to improving livelihood of the majority and other opportunities. For example, the Nigerian government informed the public that it will generate an estimate of N1.25 trillion ($803million) from wheat production in the year 2025. This ambitious goal is fostered by initiatives made to bolster food security by providing subsidized agricultural inputs to farmers across the nation while signaling that the sector can be beneficial in the international stage. However, are you aware that the happenings in the agricultural sector in relation to feeding, and the cost of its production in Africa are not too pleasant? This occurs as a result of certain impediments causing the low produce of agricultural extracts. Some of these issues are, foremost, the transportation system as a means of mobilizing farmers to their farms. After harvest, farmers encounter difficulties in conveying themselves and their produce from the field to the market. This trait constitutes itself as an obstacle in getting the crop proceeds to the populace timeously. Also, navigating roads to these farmlands particularly in Nigeria is difficult. The roads are neither motorable nor secure. Due to this farmers are frustrated. The presence of bad roads, banditry and the hike in cost of petrol are all troubling. Commercial drivers inflate fare prices at will which affects the bottom lines of these farmers. Secondly, fertilizers are gotten at exorbitant rates and access to it for cultivation is inconsistent. This poses a challenge to having a timely harvest.

 The President of FEPSAN, Abubakar Kassim, explained that the major reason for the increase of fertilizer is lack of implementation of the Fertilizer Control Act of 2019 which regulates the cost and administration of fertilizers in the country. In any case, I strongly believe that it is necessary to have alternative sources that will facilitate the growth and greenness of farm plants. Relatively, the desert still has memory of water. Therefore, it is intrinsic to not forget the pivotal role manure plays in the production of farm produce. Manure popularly known as “cow dumps” is a traditional method engaged by farmers to augment fertilizers. Usually, dumps are used in rural areas because of its availability. Irrespective, efforts can be made in getting it across urban regions in other to utilize its value.

Also, the use of manure remains crucial  because it is an added advantage and cost-effective. Additionally, cows are valuable for other domestic use such as livestock and milking.In some parts of West Africa, the decoction from this animal is known as ‘wara’ and can be likened to milk. It is a nutritious and proteinous. Apparently, inadequate produce of crops will affect the production of feed. As such, I suggest that this area is looked into forthwith as it would assist sustenance in husbandry and smoothen its rough edges accordingly.

Furthermore, the special impacts of farmers need be pointed out. African farmers are not UFO’s. They are aware of the goings-on in the land but without fail, an average man tends to intentionally and systematically resort to mediums to exploit another. For instance, Oyo, Benue, Cross River and others are the most important States in the production of cassava flour commonly called “garri”. Garri is locally made and free from any form of importation. Unfortunately, it finds itself competing with shipped-in commodities. In consideration to that, I suggest that an enforceable price-control regulation be made to checkmate the practice.

Importantly, solving agrarian poverty through mechanization and industrialization is key. German machines such as bulldozers, graders, trucks, etc., are meant to ease man-labour through ploughing even though not financially friendly. However, countries like Kenya and Ethiopia are seen to develop interest in making these machines available particularly for small holder farmers.

Conclusively, agri-business is a prospective avenue to generate income for the benefit of all.  Funds, policies are vital to this. These policies will serve as a public assistance scheme that will positively operate for the advantage of Africans and other nations across the globe.

 Ayub O. Mohammed, olamideayyub@gmail.com

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Africa has to do more to make agriculture worth the while, argues  AYUB O. MOHAMMED Considering the existing cultures and heritages, Africa is the richest continent in the world beyond
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Odu’a Investment Limited Celebrates 60 Years of Cocoa House 

Odu’a Investment Limited Celebrates 60 Years of Cocoa House 

Kemi Olaitan in Ibadan 

The Group Chairman, Odu’a Investment Company Limited (OICL), Otunba ‘Bimbo Ashiru, on Tuesday, assured investors of the commitment of the leadership of the conglomerate to make the iconic Cocoa House a hub for the future.

He gave the assurance at an event to mark 60 years since the inauguration of West Africa’s first skyscraper.

The commemorative event, which took place at the Cocoa House, Ibadan, drew dignitaries that include governors of the six South-west states, who were represented by their Secretaries to their State Governments (SSGs), business leaders and descendants of the visionaries behind the historic edifice, grandchildren of Chief Obafemi Awolowo and Chief Ladoke Akintola, among others.

Ashiru said the board under his leadership has no intention of letting the story of the edifice fade into nostalgia, adding that it would be a hub for integrating modern infrastructure, sustainable practices and cutting-edge facilities to preserve its soul.

He reflected on the building’s symbolic importance and resilience, recalling the devastating fire of January 9, 1985, that claimed lives and threatened its existence, describing its restoration as “an act of defiance” that demonstrated the indomitable spirit of the people.

He said: “Cocoa House, at 60 years old, is not just a building we work in; it is a living, breathing chapter of our collective story as a people. At 60, it is not slowing down; it is standing taller than ever, calling us to match its resilience with our own.

“May Cocoa House continue to inspire us to think big, act boldly, and work together for the good of our people.”

In his welcome address, the Group Managing Director of OICL, Mr. Abdulrahman Yinusa, described Cocoa House as more than a building, calling it a “statement” of the vision and enterprise of the Yoruba nation, tracing its history to 1965 when it was built from the proceeds of cocoa under the leadership of Chief Obafemi Awolowo and inaugurated by Chief Ladoke Akintola.

“Cocoa House is our talking drum – it calls us to remember who we are. She is our oríkì in stone and glass, telling the world of a people who could plant cocoa and harvest skyscrapers,” he said. 

Yinusa then highlighted recent upgrades, including modernization of the reception area, improved parking and enhanced surroundings, stressing OICL’s commitment to blending preservation with modernization.

The event also featured the premiere of a Cocoa House documentary, goodwill messages from the representatives of the South-west governors who are the shareholders, Development Agenda for Western Nigeria (DAWN) Commission, the South West Development Commission, and a panel discussion on ‘The Evolution of High-Rise Buildings in Nigeria.’

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Kemi Olaitan in Ibadan  The Group Chairman, Odu’a Investment Company Limited (OICL), Otunba ‘Bimbo Ashiru, on Tuesday, assured investors of the commitment of the leadership of the conglomerate to make
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Tuggar: Nigeria’ll Leverage TICAD To Deepen  Diplomatic, Economic Partnerships With Japan, African Continent 

Tuggar: Nigeria’ll Leverage TICAD To Deepen  Diplomatic, Economic Partnerships With Japan, African Continent 

* To expand $1bn trade relationship with Japan 

* Supports Africa’s commitment towards debt rescheduling and restructuring 

* To lobby world leaders for possible seat at the UN security council, international court of justice

Deji Elumoye in Abuja 

Nigeria is to leverage the Tokyo International Conference on African Development (TICAD) to advance diplomatic and economic relations with Japan and African partners, positioning as a leader in advocating for global financial system reforms and seeking broader support in global politics.

The Minister of Foreign Affairs, Ambassador Yusuf Tuggar, made this disclosure on Tuesday while speaking to newsmen ahead of Nigeria’s first participation in the Tokyo International Conference on African Development TICAD, holding in Yokohama, Japan from Wednesday to Friday.

He explained that under President Bola Tinubu’s leadership at TICAD9, Nigeria will strengthen partnerships across Africa, fostering economic diversification, greater regional integration and enhanced connectivity to deliver broad-based benefits to all citizens.

“And in the case of Nigeria, because it is a leading economy on the  continent, we seek to do what Japan did here in the 60s and 70s, because at that time Japan was the second largest economy in the world, what Japan did was to diversify into other Asian countries, and you had Japanese corporations that are referred to as Kabushiki Kaisha, they invested in other Asian countries. 

“You need an industrial base, which is what Nigeria is trying to achieve, which is what President Tinubu is committed to, and that way we can create those jobs for our teeming youths to tackle the issue of unemployment.

“And, of course, the macroeconomic reforms of President Tinubu is already in progress, and we’re beginning to feel the positive effects,” he stressed.

The minister stressed that Nigeria, being a leading economy in Africa, plays a pivotal role in the reform of the global financial architecture and is committed to supporting the continent’s efforts towards debt rescheduling and restructuring to foster sustainable growth.

His words: “Nigeria plays a very pivotal role when it comes to the reform of the global financial architecture that we continue to talk about. Because unless we have that reform in the global financial architecture, we cannot benefit, and Africa as a whole cannot benefit. 

“It does not benefit us if others are not also making progress. So with some of the things that are being tabled here, the United Nations is here, the World Bank is here, it is all about the issue of debt, debt rescheduling and debt restructuring. 

“Nigeria is leveraging, first and foremost, on this ticket to strengthen its relationship with Japan and also with other African countries, so that it leads the way in providing that restructuring of the global financial architecture, so that the whole continent, would benefit so that Africa would benefit.”

Tuggar emphasised that industrialization-driven reforms are essential for Nigeria to create jobs for its growing youth population and combat unemployment, which is currently being actively pursued by the President Bola Tinubu-led administration.

“So that Asian miracle is actually what Japan did, which is referred to as the flying geese effect, where you invest in other countries, you create that integration of economies, connectivity, and you benefit from it,” he said.

Tuggar further revealed that Nigeria aims to expand its $1 billion trade relationship with Japan to incorporate additional sectors, including the export of more agricultural commodities, while also broadening Nigerian-Japanese developmental cooperation through the Japan International Cooperation Agency (JICA) and the Japan External Trade Organization (JETRO).

The minister further said Nigeria with the attendance of 17 Heads of African countries, will engage the TICAD platform to further strengthen alliances and bolster its chances of securing the United Nations Security Council seat, the lobby for the  International Court of Justice seat and the International Maritime Organisation seat, among others.

“There’s the issue of the seat in the UN Security Council. So this is the right platform, particularly since as many as 17 heads of state are being expected, for Nigeria to lobby for that.

“There’s a seat in the International Court of Justice. There is the OPCW in the Netherlands, and there’s also the International Maritime Organization seat, a seat for a country, not an individual.

“And we need to be on the decision making tables of the world, which is why we need that position in the United Nations Security Council,” Tuggar added.

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* To expand $1bn trade relationship with Japan  * Supports Africa’s commitment towards debt rescheduling and restructuring  * To lobby world leaders for possible seat at the UN security council,
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Customs Intercepts N692m Illicit Drugs in Katsina

Customs Intercepts N692m Illicit Drugs in Katsina

Francis Sardauna in Katsina 

The Katsina Area Command of the Nigeria Customs Service (NCS) has intercepted two private vehicles loaded with illicit drugs worth N692 million along Kongolom and other border communities in the state.

The illicit drugs, comprising 14 cartons of tramadol worth N28 million, fragaballin capsules worth N650 million and 194 wraps of cannabis sativa, amounting to N692 million, were concealed in the two vehicles.

Displaying the items before journalists, the Command Area Controller, Comptroller Abba-Aji Idriss, said the intercepted illicit drugs were the first of its kind in the history of the command. 

He lamented that most of the border communities in the state are infiltrated with illicit drugs and the smugglers had deviated from rice smuggling to illicit drugs for profitable gains.

He said: “Recently in one of our borders, we were able to confiscate illicit drugs, tramadol in particular in a large quantity of about 14 cartons worth N650 million. We also confiscated fragaballin capsules worth almost N28 million. 

“This is the largest of its kind in the command, and you can not divorce the use of drugs from banditry that is going on in this region. All these were conveyed in private vehicles. 

“They have to conceal the items in vehicles that will make you believe that the vehicles are ordinary vehicles, and we will never know if we don’t stop and search. 

“By so doing, luck was on our side and we came across two vehicles at different times, and each of them conveyed a very large quantity of these illicit drugs.”

He, however, said one suspect has been arrested in connection with the seizures and would be charged to court after preliminary investigation.

Idriss called on residents of the state to work assiduously with the command in order to tame the activities of smugglers in the state.

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Francis Sardauna in Katsina  The Katsina Area Command of the Nigeria Customs Service (NCS) has intercepted two private vehicles loaded with illicit drugs worth N692 million along Kongolom and other border
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