The Nigerian Electricity Regulatory Commission (NERC) has authorized MTN Communications Nigeria Limited to produce 15.94 megawatts (MW) of power through four captive power plants situated in Lagos State. According to a NERC announcement, this authorization is part of a larger scheme that resulted in the issuance of three new trading licenses and nine off-grid generation licenses, collectively contributing 109.69MW of electricity in the first quarter of 2024.
MTN, along with other corporations such as Golden Penny Power Limited and Havenhill Synergy, has been granted permits for projects aimed at bolstering off-grid electricity production in various Nigerian states. Additional recipients of these permits include SweetCo Foods Limited, African Steel Mills Nigeria Limited, West African Ceramics Limited, Royal Engineered Stones Limited, and Armilo Plastics Limited.
With this permit, MTN is set to establish four captive generation facilities throughout Lagos State, totaling a capacity of 15.94 MW. Golden Penny Power Limited, in turn, has been licensed to construct six off-grid gas plants across Lagos, Oyo, Ogun, and Cross River states. The captive power generation license awarded to MTN enables the company to construct and operate power plants primarily for their consumption rather than for selling electricity.
Other companies that have been granted licenses to develop mini-grids include Daybreak Power Solutions, TIS Renewable Energy Limited, Auro Nigeria Private Limited, Watts Exchange Limited, Centum Dopemu Energy Services Ltd, and DMD Electric Limited, all of which are slated to operate in Lagos State.
Under Section 165(1)(m) of the Electricity Act 2023, the Nigerian Electricity Regulatory Commission (NERC) is empowered to grant licenses for mini-grid concessions to renewable energy providers. These licenses allow companies to exclusively supply electricity to designated areas while fulfilling the obligation to serve the local customer base.
The NERC has confirmed that it issued three mini-grid permits and two registration certificates in the first quarter of 2024 after a thorough assessment of the applications received.
In a separate development, the MTN Group has reported a significant 20.8% decline in group service revenue in its semi-annual report for 2024. This downturn has been attributed to the devaluation of the Nigerian naira and operational difficulties encountered in Sudan.
Two weeks prior to the report, MTN Group had issued a warning that there would be a substantial drop in its financial indicators, forecasting a 140% to 150% fall in headline earnings per share (HEPS) and a 175% to 180% reduction in earnings per share (EPS) for the half-year period.
Despite these challenges, MTN South Africa, a smaller market compared to MTN Nigeria—which is the company’s largest market in terms of revenue—saw a slight increase in service revenue, posting a growth of 3.3%. MTN maintains its commitment to pursuing its growth strategy, even in the face of these financial setbacks.
