An energy expert, Ms Rahila Thomas, has called for the creation of a high-level inter-ministerial committee to tackle the rising energy burden on mining companies that rely heavily on self-generated power.
Thomas, who is the Country Director of Energy Markets and Rates Consultants (EMRC) Limited, said the proposed committee should align efforts across the Ministries of Power, Solid Minerals, Finance, and Budget and National Planning to integrate Nigeria’s mining and power sectors.
According to her, such integration would unlock investment opportunities, enhance industrial growth, and reduce dependence on costly and polluting diesel-powered generation.
“To catalyse this integration, a high-level coordination council should harmonise rules and tools such as standard power purchase agreements, grid connection guidelines, and reliable data systems,” she said.
Thomas explained that this framework would make electricity access easier and cheaper for mining firms, while encouraging cleaner and more efficient power use.
She also advocated the development of “Mining Embedded Power Purchase Agreements (PPAs),” grid connection and curtailment codes, and incentives that could cut project costs and transaction barriers.
“Creating a one-stop mining-power data portal would also help drive investment and improve transparency,” she added.
Thomas emphasised that reliable and affordable electricity supply was essential to unlocking value-added mining, boosting exports, and creating industrial jobs.
“The power sector, in turn, depends on creditworthy large-scale consumers to make investments viable. Aligning both sectors can create a self-sustaining cycle of growth,” she noted.
She urged mining firms to take advantage of the Eligible Customers Regulation, which allows large power users to purchase electricity directly from generation companies, rather than relying on costly captive power plants.
“By switching to cleaner grid-based energy, mining companies can save costs, reduce emissions, and tap into climate financing opportunities,” she said.
Thomas, who also co-facilitates the Energy and Industrial Policy Commission at the Nigeria Economic Summit Group (NESG), stressed that high energy costs—sometimes reaching ₦450 per kilowatt-hour for diesel-powered generation—remain a major constraint on Nigeria’s mineral development.
She reiterated that a coordinated policy approach was key to addressing these structural barriers and ensuring the mining sector contributes more meaningfully to national industrialisation and economic growth.
