MTN Nigeria secures a license to generate electricity in Lagos. The Nigerian Electricity Regulatory Commission (NERC) has granted MTN a permit to generate 15.94 megawatts (MW) of electricity across four captive power plants in Lagos State.
Per a statement by NERC, this license is part of a broader initiative that saw it issuing three new trading licenses and nine off-grid generation licenses with a total capacity of 109.69MW in Q1 2024.
Alongside MTN, companies like Golden Penny Power Limited, Havenhill Synergy, and others received permits for similar projects to enhance off-grid power generation in various states.
The other entities that got the permit are SweetCo Foods Limited, African Steel Mills Nigeria Limited, West African Ceramics Limited, Royal Engineered Stones Limited, and Armilo Plastics Limited.
Following the permit, MTN can build four captive generation plants across Lagos State with a 15.94 MW capacity, while Golden Penny Power Limited got a licence to build six off-grid gas plants in Lagos, Oyo, Ogun, and Cross River states.
Captive power generation licences, like the one issued to MTN, allow companies to own and run power plants to generate electricity for their use, not resale.
Other licensed companies
Other licensed companies with permits to build mini-grids are Daybreak Power Solutions, TIS Renewable Energy Limited, Auro Nigeria Private Limited, Watts Exchange Limited, Centum Dopemu Energy Services Ltd, and DMD Electric Limited in Lagos State.
Section 165(1)(m) of the Electricity Act 2023 gives the NERC the authority to issue licences for mini-grid concessions to renewable energy companies to exclusively provide power to specific areas with obligations to serve local customers.
The commission confirmed issuing three mini-grid permits and two registration certificates in quarter 1 of 2024, following a satisfactory evaluation of applications.
In related news, MTN Group reported a 20.8% drop in group service revenue in its half-year 2024 report, attributing the revenue slump to naira devaluation and operations challenges in Sudan.
Two weeks ago, MTN Group warned of a 140% to 150% drop in headline earnings per share (HEPS) and a 175% to 180% decrease in earnings per share (EPS) for its half-year results.
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Compared to service revenue from MTN Nigeria, the company’s biggest market by revenue, MTN South Africa performed better, recording a marginal growth of 3.3%. Despite the setbacks, MTN says it’s committed to its growth strategy.
