Utilities
From The Report: Nigeria 2015
View in Online Reader

The lack of power has been among the biggest obstacles to economic growth, and Nigeria is in the midst of a long and complex effort to increase electricity supply by more than fivefold by 2020, from the current level of about 3400 MW to 20,000 MW. The immediate result of this is a spike in demand for capital to rehabilitate existing capacity and add new supply, making foreign investment – through tenders and ancillary initiatives like the US Power Africa programme – crucial to the success of this reform effort. As of early 2015, the market had entered into what the road map calls a “transitional electricity market”. Over the next several years, two government-owned firms will act as intermediaries for transactions in the marketplace. Both bodies are temporary actors in the market and will be closed once the electricity sector can stand on its own. For now, their presence is deemed necessary to facilitate the signing of long-term contractual relationships between parties along the value chain, and to limit defaults and volatility.

This chapter contains interviews with Chinedu Nebo, Minister of Power, and Paul Hinks, CEO, Symbion Power

Articles from this Chapter

Overview

Expanding access to electricity and clean water in Nigeria
OBG
plus

The lack of power has been among the biggest obstacles to higher levels of economic growth, and Nigeria is in the midst of a long and complex effort to increase electricity supply by more than fivefold by 2020, from the current level of about 3400 MW to 20,000 MW. The immediate result of this is a spike in demand for capital to rehabilitate existing capacity and add new supply, making foreign investment – through tenders and ancillary initiatives like the US Power Africa programme – crucial to…

Interview

Chinedu Nebo, Minister of Power: Interview
OBG
plus

Interview: Chinedu Nebo How would you rate the effectiveness of efforts to privatise the power sector thus far? CHINEDU NEBO: We have come a long way in a seamless manner, transitioning from a vertically controlled, government-dominated sector to one that is driven by private companies. This was not an easy task. One of the major challenges that we faced was resistance from the Power Holding Company of Nigeria (PHCN). Labour resisted privatisation from day one. They thought it was not in the best…

Analysis

Privatisation of power generation assets in Nigeria
OBG
plus

The effort to privatise Nigeria’s electricity sector is far from new – it was discussed as early as the late 1990s and the basics were outlined in the 2001 National Electric Power Policy. The spate of policies rolled out over the past two decades came from different administrations, but share a belief that a healthy national power system – one able to meet domestic needs – is unlikely as long as the government is the owner and operator of the system. That is, in part, because the federal…

Analysis

Nigeria’s plans to make hydro-electric and solar key power sources
OBG
plus

Though the focus for power in Nigeria is on leveraging the country’s considerable gas reserves, there is also a master plan and contribution targets for renewable sources. The plan aims to attract investment in a range of related activities beyond building and running power plants, including equipment manufacturing, feasibility studies and capacity building. For now, Nigeria remains more prospective than productive in renewables, with only hydroelectric energy making a major contribution, at about…

Interview

Paul Hinks, CEO, Symbion Power: Interview
OBG
plus

Interview: Paul Hinks How can international firms best leverage the opportunities offered by the Power Africa initiative? PAUL HINKS: Firms should first register themselves with USAID as a Power Africa partner, which requires them to map out potential investments or contributions to electrification across the continent for a five-year period. Power Africa is not just about the US government providing financing for projects – it’s about providing support for the private sector and creating an…