The Dangote Group, led by billionaire industrialist Aliko Dangote, has achieved a groundbreaking feat by generating 1,540 megawatts of power for its manufacturing operations. This move has granted the conglomerate energy independence, shielding it from Nigeria’s persistent power grid failures and unreliable electricity supply.
Speaking during a fireside chat with the Prime Minister of Grenada, Dickon Mitchell, Dangote highlighted the group’s commitment to self-reliance. “The only way we could address electricity challenges was to decide that all our businesses generate their own power,” he said.
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The scale of Dangote Group’s power generation dwarfs that of Grenada, a Caribbean nation, which produces just 50 megawatts for its entire population. “Your businesses generate more power than the entire island,” Prime Minister Mitchell remarked, underscoring the sheer magnitude of the achievement.
Energy Costs Crippling Nigerian Manufacturing
The energy crisis in Nigeria has pushed many manufacturers to self-generate power, as the national grid remains insufficient. Despite a theoretical capacity of 10,000 megawatts, the country only produces about 5,000 megawatts—barely enough for its population of over 200 million.
According to the Manufacturers Association of Nigeria, companies spent a staggering ₦238.31 billion on alternative energy sources in the first half of 2024 alone. Industry experts note that self-generation has become a lifeline for businesses looking to remain competitive.
Why Dangote Group Invested in Power
Dangote’s investment in power generation wasn’t just about survival but strategic positioning. “We transitioned from trade to manufacturing, and electricity became our biggest challenge,” Dangote explained. By generating its own power, the group avoided costly disruptions and ensured operational efficiency across its subsidiaries.
Today, the 1,540 megawatts produced by Dangote Group is a testament to the importance of energy independence for business resilience. “Reliable power is key to unlocking Nigeria’s industrial potential,” Dangote emphasized.
A Wider Energy Challenge
Nigeria’s energy poverty has long been a barrier to industrialization, forcing some companies to relocate to countries with stable power. With an underutilized power grid and a growing demand for energy, businesses like Dangote Group have taken matters into their own hands.
The success of Dangote’s energy strategy offers a blueprint for other large enterprises seeking to overcome Nigeria’s power crisis.
