Abuja: 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).

According to News Agency of Nigeria, Thomas emphasized the need for a committee to focus on integrating Nigeria’s mining and power sectors. She explained that this integration could unlock billions in investment, boost industrial growth, and reduce the mining industry’s reliance on costly and polluting self-generated electricity. Thomas suggested the committee should synchronize efforts across the Ministries of Power, Solid Minerals, Finance, and Budget and National Planning to develop uniform rules and tools, such as standard power agreements and clear grid connection guidelines.

Thomas stated that the development of standardised commercial a
nd technical toolkits, including Mining Embedded Power Purchase Agreements (PPAs) and Grid Connection Codes, would help reduce project costs and transaction friction. She also proposed the creation of a one-stop mining-power data portal to drive investment and design incentives.

Thomas highlighted the strong interconnection between the mining and power sectors, noting that reliable and affordable electricity is essential for advancing value-added mining, enhancing export potential, and expanding industrial employment. She pointed out that the power sector also benefits from creditworthy, large-scale, and long-term consumers to reduce investment risks and make power projects financially viable.

Thomas urged mining firms to leverage the Eligible Customers Regulation, which allows large power users like mining companies to buy electricity directly from generation companies instead of distribution companies. She explained that this shift could help mining companies save money, reduce emissions, and access clima
te-related funding.

During a panel session on ‘Power-Mining Integration in Nigeria: Opportunities and Risks’ at the recent Nigeria Mining Week, Thomas discussed the challenges affecting Nigeria’s mineral resource development. She highlighted the country’s abundant minerals, including lithium essential for global emission reduction targets, constrained by infrastructure deficits and high operating costs.

Thomas pointed out that many mining companies rely on diesel generators, paying up to N450 per kilowatt-hour (kWh) for power, which is 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).