Seplat to Invest in Power Sector to Tackle Nigeria’s Electricity Deficit

Seplat Energy Plc, one of Nigeria’s leading indigenous energy companies, has announced a bold move to invest significantly in the country’s power sector. The initiative is part of the company’s broader strategic shift to diversify its operations and contribute to bridging the huge energy access gap in Nigeria, particularly in off-grid communities.

According to the company’s CEO, Roger Brown, Seplat’s investment in the power sector is aimed at complementing its role as a major gas supplier in the country while also addressing the systemic electricity shortages that continue to hinder economic growth and development. Nigeria, despite being Africa’s most populous nation, continues to grapple with an unreliable power supply, with millions of citizens and businesses depending on generators or alternative sources of energy.

Brown noted that Seplat already plays a critical role in Nigeria’s gas-to-power value chain. The company currently supplies around 30% of the gas used for power generation in the country, operating major gas processing plants such as the Oben and Sapele facilities, which together process over 300 million standard cubic feet of gas per day. The company is also developing the ANOH Gas Processing Plant, another 300 MMscfd capacity facility, in partnership with the Nigerian Gas Infrastructure Company (NGIC), a subsidiary of the Nigerian National Petroleum Company Limited (NNPCL). The ANOH project is expected to come online in 2025 and will further strengthen Seplat’s footprint in the gas and power sectors.

However, with this new investment push, Seplat is moving beyond gas supply and venturing directly into electricity generation and distribution. The company’s focus, according to insiders, will be on deploying power solutions to rural and underserved off-grid areas, where government efforts have struggled to make meaningful impact. This aligns with the government’s goals under its Electricity Act, which aims to promote private sector participation, decentralize electricity generation, and boost renewable energy adoption.

Brown explained that the decision to target off-grid communities is both a business opportunity and a social responsibility. “There are millions of Nigerians who remain disconnected from the national grid. These communities often resort to burning wood or relying on kerosene, which are not only expensive in the long term but also harmful to health and the environment,” he said. “Our aim is to deliver cleaner, more sustainable, and more affordable power to such areas, starting with pilot projects in the Niger Delta region.”

The company’s planned investment will likely involve a combination of gas-powered mini-grids and renewable hybrid systems, depending on local geography and infrastructure. Experts believe this approach could significantly reduce power poverty in remote areas while also driving local economic development, education, and healthcare access.

Seplat’s decision comes at a time when many international oil companies are retreating from Nigeria’s energy market, citing operational challenges and environmental concerns. This has opened the door for local firms like Seplat to take on a more prominent role in the country’s energy future. The recent approval of Seplat’s $1.28 billion acquisition of assets from Mobil Producing Nigeria Unlimited (MPNU) by the federal government is also expected to further enhance its upstream and midstream capabilities, giving it greater leverage to support downstream power ventures.

Analysts say Seplat’s move into the power sector represents a significant shift in Nigeria’s energy landscape, marking a trend where oil and gas firms are not just extractors of resources but also drivers of infrastructural development and economic empowerment. “What Seplat is doing shows that local companies can be at the forefront of solving Nigeria’s long-standing energy crisis,” said energy analyst Boma Ezekiel. “Their existing infrastructure and expertise in gas supply give them a strong foundation for venturing into power generation.”

The company has hinted that it will collaborate with development finance institutions, donor agencies, and local governments to ensure the sustainability of its power initiatives. This will include community engagement programs, training for local technicians, and efforts to promote energy conservation and efficiency.

For communities that stand to benefit, the impact could be transformative. Better power access means more productive hours for small businesses, improved learning conditions for students, and enhanced medical services, particularly in primary health centers where reliable electricity is often lacking.

Seplat’s investment plan is still in its early stages, and while no specific figures have been disclosed yet, the company’s commitment signals a growing willingness among Nigeria’s private sector players to take active roles in national development. If successful, Seplat’s venture into the power sector could serve as a model for other indigenous companies looking to diversify while making a meaningful impact.

 

In a country where energy access remains one of the most pressing issues of the 21st century, Seplat’s foray into power generation is not just a corporate decision—it’s a potential catalyst for change.