THE NIGERIA ELECTRICITY SUPPLY INDUSTRY

Article written by R, L Grice

Nigeria is Africa''s most populous country with a population exceeding 130 million (2005) and an area four times the size of the United Kingdom. A visitor to Nigeria is quickly made aware of the vagaries and unreliability of the Nigerian national electricity industry, which, despite employing 33,000 workers (2005 figures) is clearly in need of assistance. The Nigerian Electricity Supply Industry requires massive modernisation and restructuring as is evidenced by the very frequent power cuts and the chronic under capacity of the system at present. The author recently acted as a consultant to help facilitate the restructuring and privatisation of the industry by preparing and delivering training courses in Nigeria to delegates from law firms, banks, and Government bodies.

A Government License is required if an individual or a company plans to generate more than 1MW of power, which means that the private sector could provide a useful input into the National electricity supply network. In the short term, the most attractive projects would be up to 30MW and could be part of CHP or CCHP with absorption chillers. The banking sector in Nigeria is much smaller than that of the UK, for example, and raising the necessary capital for huge projects would be unlikely whereas up to 30MW projects offer good return on investment and attractive pay-back periods. Suitable projects might include:-

• woodpulp mills
• large hotels (the Hilton in Abuja has 1000 bedrooms)
• shopping malls
• airport terminals
• factories and industry

The Nigerian Government is actively researching the application of renewable energy sources including windpower and solar energy. Indeed, solar voltaic panels have already been used in some outlying villages for pumping water etc. In addition, the author understands that discussions have already taken place with the International Atomic Energy Authority for the safe use of nuclear power.

In conclusion, the Government under Obasanjo laid the foundations with its restructuring plans for privatisation of the electricity supply industry. A detailed study would show that these plans did not go as far as that of the UK but if properly implemented and sufficient private investment took place, could greatly alleviate the present unsatisfactory situation.