Captive generation, especially among industrial users, has become widespread, as public supply remains unreliable
Lagos State’s off-grid electricity capacity has surpassed Nigeria’s entire grid-connected generation, according to a report by the Africa Finance Corporation. The report, titled State of Africa’s Infrastructure Report 2025, reveals Lagos’ off-grid capacity is estimated at over 19 gigawatts, significantly higher than the national grid’s inconsistent output of 4-5 gigawatts. The shift to off-grid power highlights the failure of centralized systems to meet rising urban and industrial demands.
The report notes, “A growing share of generation is now occurring outside the grid, through off-grid, embedded, and captive power systems, particularly in Africa’s largest economies, Nigeria and South Africa.” It underscores that off-grid solutions, while innovative, reflect deeper systemic failures, with many businesses relying on diesel and gas-fired plants due to unreliable public supply.