The Nigerian Electricity Regulatory Commission (NERC) has authorised MTN Communications Nigeria Limited to generate 15.94 megawatts (MW) of power through four captive power plants in Lagos State. This move is part of a broader initiative by NERC, which issued a total of three new trading licenses and nine off-grid generation licenses in the first quarter of 2024, collectively adding 109.69 MW to Nigeria’s electricity capacity.
MTN joins other companies, including Golden Penny Power Limited and Havenhill Synergy, to receive permits to enhance off-grid electricity generation across various Nigerian states. Other license recipients include SweetCo Foods Limited, African Steel Mills Nigeria Limited, West African Ceramics Limited, Royal Engineered Stones Limited, and Armilo Plastics Limited.
The license allows MTN to establish four captive generation facilities across Lagos State with a total capacity of 15.94 MW. Meanwhile, Golden Penny Power Limited has been authorized to build six off-grid gas plants across Lagos, Oyo, Ogun, and Cross River states. The captive power generation license enables MTN to produce and use electricity primarily for its own operations, rather than selling it commercially.
Additionally, licenses have been awarded to several companies, including 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 will develop mini-grids in Lagos State.
These licenses, granted under Section 165(1)(m) of the Electricity Act 2023, empower NERC to authorize renewable energy providers to operate mini-grid concessions. This allows companies to exclusively supply electricity to designated areas while ensuring they meet the local demand.
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.
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