Utilities
From The Report: Nigeria 2012
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This chapter looks at Nigeria’s power output and generating capacity, both of which currently sit well below those of neighbouring countries, although work to address this is proceeding. According to figures from a World Bank study, Nigeria produced 124 KWh per year in 2010. Much of Nigeria’s power generation, transmission and distribution capacity is ageing and poorly maintained. At present, around 70% of national capacity, which works on natural gas, has either failed or is proven to be insufficient. Therefore, President Goodluck Jonathan has made the power sector a top priority, initiating a detailed road map for its development. The sector has already attracted interest: Germany-based Siemens recently built the 414-MW Geregu power plant and is engaging in the development of other projects in partnership with international investors.

This chapter contains interviews with Sam Amadi, Chairman, Nigeria Energy Regulatory Commission; and John Rice, Vice-Chairman, General Electric.

Articles from this Chapter

Overview

Power to the people: Long subjected to shortages, the country is set for a boost in capacity
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Aspiring to join the ranks of the world’s top-20 economies by 2020, Nigeria’s growth trajectory is currently being impeded by one thing above all others: its small and dated electric power system. Government officials are aware of this, however, and solutions are high on the national “to-do” list, with some remedies already well in progress. POWER VACUUM: According to figures from a World Bank study, Nigeria produced 124 KWh per year in 2010, compared to other African OPEC members…

Interview

OBG talks to Sam Amadi, Chairman, Nigeria Energy Regulatory Commission
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Interview: Sam Amadi What do you consider to be the biggest obstacle to the implementation of power sector reform? SAM AMADI: Vested interests from all over pose the biggest obstacle for power sector reform. First there are the workers legitimately concerned about their employment statuses post privatisation. Then there are the businesses who would like to have a windfall on state assets and the new political lobbyists who want to highjack the emerging order. Each of these interest groups is likely…

Interview

OBG talks to John Rice, Vice-Chairman, General Electric
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Interview: John Rice To what extent will liberalised electricity tariff regimes in Africa provide investment potential? JOHN RICE: Sustained power generation is acquiring critical importance in the Middle East and Africa, where governments are focused on infrastructure development and in meeting the increasing demand for electricity from fast-growing populations. The watchword in sustaining the investment and growth potential of the region’s power sector is “efficiency”: is the investment…

Interview

OBG talks to John Rice, Vice-Chairman, General Electric
OBG
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Interview: John Rice To what extent will liberalised electricity tariff regimes in Africa provide investment potential? JOHN RICE: Sustained power generation is acquiring critical importance in the Middle East and Africa, where governments are focused on infrastructure development and in meeting the increasing demand for electricity from fast-growing populations. The watchword in sustaining the investment and growth potential of the region’s power sector is “efficiency”: is the investment…

Analysis

Waterfall of opportunities: A number of improvements in distribution infrastructure are expected in the coming years
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A large endowment of water has been both Nigeria’s blessing and its curse. A nationwide network of perennial and seasonal rivers, inland lakes, ponds and coastal lagoons allow for easy access to 267.3bn cu metres of surface water, complemented by over 51.9bn cu metres of groundwater resources, according to the Nigerian National Planning Commission. However, rapid urbanisation and population growth, exacerbated by mismanagement, have led to infrastructural deficiencies. ROOM FOR IMPROVEMENT:…

Analysis

From waste to wealth: Bringing in the private sector to address shortcomings with waste management infrastructure
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As domestic migration and population growth increase the pressure on urban waste management infrastructure, Nigeria’s federal and state-level policymakers are increasingly turning towards the private sector to attract investment and management expertise. MOUNTING PROBLEM: Rapid urbanisation set off by the oil boom in the 1970s has outpaced the design and implementation of waste management policies in many urban areas, in particular Nigeria’s biggest cities, such as Lagos, Ibadan, Port…

Analysis

Energising the sector: Privatisation of the former state-owned power company begins
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In the second half of July 2012 hopefuls submitted technical and financial bids for 17 of the 18 companies formed from the state-owned Power Holding Company of Nigeria (PHCN). With announcement of the preferred bidders for five out of six generation companies made in September 2012. An accumulated total of over $1bn had been offered for the power plants at Ughelli, Sapele, Geregu, Shiroro and Kanji. Nigerian players, sided by foreign energy conglomerates, featured prominently among the favoured…

Analysis

A fresh start: Officials are hoping to begin a new chapter in power production
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In terms of electricity production, Nigeria’s power sector faces many challenges. According to June 2012 remarks by Bart Nnaji, the former minister of power, the Power Holding Company of Nigeria (PHCN), which is being unbundled, had debts of N400bn ($2.56bn). With its own plants gas-fired, PHCN had been paying just 50% of what it owed for that gas to the international oil companies supplying it. It was also finding it difficult to pay bills to power plants it did not own, such as those run…