Nigeria’s electricity distribution companies face a deepening financial crisis as major industrial players and households increasingly abandon the national grid for self-generation. Driven by persistent grid instability, entities including Dangote Group, NNPC Limited, and Total have joined roughly 250 other firms in generating their own power. This industrial exodus, mirroring a trend led by residential solar adoption, has resulted in an estimated 6,500 megawatts of captive power—significantly outpacing the national grid’s supply. Analysts warn this trend creates a ‘death spiral’ for utility firms, which are already struggling with over N6 trillion in sector debt, as the loss of reliable, high-paying customers leaves them with a shrinking, less-profitable base. Nigeria added 803 megawatts of solar capacity in 2025, with projections suggesting a potential reach of 87 gigawatts by 2035.