Table of Contents
Key Points
- MTN Nigeria secures NERC permits to build four mini-grid plants in Lagos with a total capacity of 15.94 MW.
- NERC issued nine new off-grid licenses in Q1 2024, totaling 52.57 MW; Golden Penny Power and others also received permits.
- Under Karl Toriola, MTN Nigeria’s revenue surged 32.8% to $927.07 million for the first half of 2024.
MTN Nigeria, the largest telecommunications company in Nigeria led by leading business executive Karl Toriola, has received permits from the Nigerian Electricity Regulatory Commission (NERC) to generate mini-grid electricity.
The permits, issued in the first quarter of 2024, authorize the telecommunications giant to establish four captive power generation plants in Lagos State, totaling 15.94 megawatts in capacity. This is part of a broader strategy to advance renewable energy and off-grid solutions in Nigeria.
In addition to MTN Nigeria, NERC has granted licenses to several other companies, including Golden Penny Power and Havenhill Synergy. A total of nine new off-grid generation licenses were issued during the first quarter, with an overall capacity of 109.69 megawatts. The commission also granted three new trading licenses.
Captive power permits issued to firms
Golden Penny Power was approved to build six off-grid gas plants across Lagos, Oyo, Ogun, and Cross River states, with a total capacity of 100 megawatts. Additional permits for captive power generation were granted to Sweetco Foods Limited, African Steel Mills Nigeria Limited, West African Ceramics Limited, Royal Engineered Stones Limited, and Armilo Plastics Limited.
Captive power generation permits are issued by NERC to entities that generate electricity primarily for their own consumption, rather than for resale. In the first quarter of 2024, NERC granted nine such permits with a total nameplate capacity of 52.57 megawatts.
Under the Electricity Act of 2023, NERC is authorized to grant mini-grid concessions to renewable energy firms, mandating them to generate and distribute power within specific areas while meeting customer demands. The permits facilitate the construction, operation, and maintenance of mini-grids with capacities ranging from 100 kilowatts to 1 megawatt.
MTN Nigeria’s financial growth
MTN Nigeria, a subsidiary of MTN Group, Africa’s leading mobile network operator, offers a comprehensive suite of telecommunications services, including mobile network access, internet connectivity, bill payments, and device financing solutions.
Under Toriola’s leadership, the company reported a 32.8 percent increase in revenue, reaching $927.07 million for the six months ending June 30, 2024. This marks a significant growth from the N1.16 trillion ($697.79 million) recorded in the same period last year.
In a related development, MTN Nigeria and IHS Nigeria have announced the renewal and extension of their tower Master Lease Agreements, which will now run until December 2032.
