The Dangote Group currently generates 1,540 megawatts of electricity to sustain its manufacturing operations, ensuring energy independence and reducing reliance on Nigeria’s unstable power supply.
Aliko Dangote, President and Chief Executive Officer of the Dangote Group, discloses this during a fireside chat with the Prime Minister of Grenada, where he serves as a Special Guest. He highlights the company’s strategic investment in power generation, emphasizing that energy security is essential for business sustainability.
Dangote explains that the decision to generate independent power stems from expert advice as the company transitions from trading to large-scale manufacturing.
“The biggest challenge is electricity. The only way to overcome it is to ensure that all our businesses generate their own power. That’s why, as a group, we currently generate 1,540 megawatts of self-consumed power,” he states.
The Prime Minister of Grenada, Dickon Mitchell, expresses astonishment at the Dangote Group’s power capacity, noting that the Caribbean island nation generates only 50 megawatts—30 times less than what Dangote Group produces for its operations.
“The total amount of power generated by Grenada is 50 megawatts,” Mitchell remarks. “So, your businesses alone generate more power than our entire country.”
Like Dangote Group, several major manufacturing companies in Nigeria rely on self-generation due to frequent power grid failures and inadequate supply.
The high cost of alternative energy sources remains one of the biggest challenges for Nigeria’s manufacturing sector. According to the Manufacturers Association of Nigeria (MAN), companies spend billions of naira annually on alternative energy sources to keep their operations running.
Despite having an installed generation capacity of about 10,000 megawatts, Nigeria currently produces around 5,000 megawatts—far below the demand of its over 200 million population.
This energy shortfall continues to hinder industrialization, forcing many businesses to relocate to countries with more stable and affordable electricity. Dangote’s approach highlights the importance of energy security in sustaining industrial growth in Nigeria.
