By Martha Agas
An energy expert, Ms Rahila Thomas, has called for the establishment of a high-level inter-ministerial committee to address the burden on mining companies that largely self-generate power for their operations.
Thomas, the Country Director of Energy Markets and Rates Consultants (EMRC) Limited, made the call in an interview with the News Agency of Nigeria (NAN) on Monday in Abuja.
She said the committee would focus on integrating Nigeria’s mining and power sectors to unlock billions in investment, boost industrial growth and reduce the industries’ reliance on costly and polluting self-generated electricity.
“To catalyse this integration, the high-level inter-ministerial coordination committee or council will synchronise efforts across the Ministries of Power, Solid Minerals, Finance, and Budget and National Planning,” she said.
Thomas explained that the move was crucial to develop uniform rules and tools such as standard power agreements, clear grid connection guidelines and reliable data systems.
According to her, this will make it easier and cheaper for mining companies to access electricity, attract investment and encourage growth in the sector.
“This can result in standardising commercial and technical toolkits such as Mining Embedded Power Purchase Agreements (PPAs), Grid Connection, and Curtailment Codes for Mines to reduce project costs and transaction friction.
“It can also help design incentives and create a one-stop mining-power data portal to drive investment,” she said.
Thomas emphasised the strong interconnection between the mining and power sectors, explaining that a reliable and affordable electricity supply was vital for advancing value-added mining, enhancing export potential, and expanding industrial employment.
According to her, the power sector likewise depends on creditworthy, large-scale and long-term consumers to reduce investment risks and make power projects financially viable.
“Aligning the two creates a self-reinforcing cycle of investment and growth,” she said.
Thomas urged mining firms to stop relying solely on their own power generators and leverage on the use of the Eligible Customers Regulation to buy cleaner, cheaper electricity from the grid.
The expert explained that the eligible customers regulation allows large power users such as mining companies to buy electricity directly from generation companies instead of distribution companies.
She said the move could help mining companies save money, reduce emissions, and open doors to climate-related funding.
“Mining companies should explore the use of Eligible Customers Regulation to make a switch from polluting and expensive captive generation plants.
“To cleaner energy sources from the grid that can earn them carbon credit revenues and unlock climate financing for power projects across the Nigeria Electricity Supply Industry,” she said.
NAN recalls that Thomas, during a panel session on “Power–Mining Integration in Nigeria: Opportunities and Risks” at the recent Nigeria Mining Week, discussed challenges affecting the nation’s mineral resource development.
She said Nigeria’s abundant minerals, including lithium vital for achieving global emission reduction targets, were constrained by infrastructure deficits and high operating costs.
Thomas said they included unreliable and costly electricity supply, which posed one of the most significant barriers to growth.
Thomas stated that many mining companies relied on diesel generators, paying up to N450 per kilowatt-hour (kWh) for power, excluding capital expenses over four times the cost borne by grid-connected industries with limited reliability.
She is also a Co-Facilitator of the Energy and Industrial Policy Commission at the Nigeria Economic Summit Group (NESG).(NAN)
Edited by Bashir Rabe Mani
