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Adequate power supply is an unavoidable prerequisite to any nation's development, and electricity generation, transmission and distribution are capital-intensive activities requiring huge resources of both funds and capacity. In the prevailing circumstances in Nigeria where funds availability is progressively dwindling, creative and innovative solutions are necessary top address the power supply problem. Nigeria has an estimated 176 trillion cubic feet of proven natural gas reserves, giving the country one of the top ten natural gas endowments in the world and the largest endowment in Africa. Natural gas is a natural occurring gaseous mixture of hydrocarbons gases found in underground reservoirs. It consists mainly of methane (70% -95%). With small percentage of ethane, propane, butane, pentane and other heavier hydrocarbons with some impurities such as water vapour, sulphides, carbon dioxides, etc.
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Electricity Generation and the Present Challenges in the Nigerian
Power Sector
A. S. Sambo, B. Garba, I. H. Zarma and M. M. Gaji
Energy Commission of Nigeria, Abuja-Nigeria
Email: ;;;
Adequate power supply is an unavoidable prerequisite to any nation’s development, and
electricity generation, transmission and distribution are capital-intensive activities requiring huge
resources of both funds and capacity. In the prevailing circumstances in Nigeria where funds
availability is progressively dwindling, creative and innovative solutions are necessary top
address the power supply problem.
Nigeria has an estimated 176 trillion cubic feet of proven natural gas reserves, giving the country
one of the top ten natural gas endowments in the world and the largest endowment in Africa.
Natural gas is a natural occurring gaseous mixture of hydrocarbons gases found in underground
reservoirs. It consists mainly of methane (70% - 95%). With small percentage of ethane,
propane, butane, pentane and other heavier hydrocarbons with some impurities such as water
vapour, sulphides, carbon dioxides, etc.
Nigeria is a vast country with a total of 356, 667 sq miles (923,768 sq km), of which 351,649 sq
miles (910,771 sq km or 98.6% of total area) is land. The nation is made up of six Geo-Political
Zones subdivided into 36 states and the Federal Capital Territory (FCT). Furthermore, the
vegetation cover, physical features and land terrain in the nation vary from flat open savannah in
the North to thick rain forests in the south, with numerous rivers, lakes and mountains scattered
all over the country. These national physical and political attributes themselves present
challenges for the effective provision of power needs to all nooks and crannies of the country.
To provide adequate power to ensure that Nigeria is among the industrialized nations, three
critical activities must be effectively achieved.
Adequate power must be generated;
The power must effectively be transmitted to all parts of the country; and
Finally be efficiently distributed to the consumers.
Since development and population growth in any country are highly dynamic, these three
activities must also be carefully addressed in a dynamic, creative and logical manner.
Adequate power supply is an unavoidable prerequisite to any nation’s development, and
electricity generation, transmission and distribution are capital-intensive activities requiring huge
resources of both funds and capacity. In the prevailing circumstances in Nigeria where funds
availability is progressively dwindling, creative and innovative solutions are necessary top
address the power supply problem.
The administration of President Umaru Musa Yar’adua has already unveiled a mission, setting an
agenda of industrializing Nigeria by 2020, which is in the next 10 years. This conference is
therefore one of the highest and administrative governing structures that must consider and
proffer practicable solutions to the power supply problems in order to achieve this priority goal
of the Nigerian Government.
This paper therefore presents a brief history of the attempts and efforts to supply power to the
nation. It also briefly reviews the current status of energy resources, energy demand and supply,
power generation, transmission and distribution, power sector national policy, summary of the
major challenges and the way forward.
To discuss the power sector in Nigeria in a realistic and practical context, some brief review is
necessary to give an insight into the sector since independence.
Electricity supply in Nigeria dates back to 1886 when two (2) small generating sets were
installed to serve the then Colony of Lagos. By an Act of Parliament in 1951, the Electricity
Corporation of Nigeria (ECN) was established, and in 1962, the Niger Dams Authority (NDA)
was also established for the development of Hydro Electric Power. However, a merger of the two
(2) was made in 1972 to form the National Electric power Authority (NEPA), which as a result
of unbundling and the power reform process, was renamed Power holding Company of Nigeria
(PHCN) in 2005.
The Nigerian power sector is controlled by state-owned Power Holding Company of Nigeria
(PHCN), formerly known as the National Electric Power Authority (NEPA). In March 2005,
President Olusegun Obasanjo signed the Power Sector Reform Bill into law, enabling private
companies to participate in electricity generation, transmission, and distribution. The government
has separated PHCN into eleven distribution firms, six generating companies, and a transmission
company, all of which will be privatized. Several problems, including union opposition, have
delayed the privatization, which was later rescheduled for 2006. In February 2005, the World
Bank agreed to provide PHCN with $100 million to assist in its privatization efforts.
The Nigerian government has made an effort to increase foreign participation in the electric
power sector by commissioning independent power projects (IPPs) to generate electricity and
sell it to PHCN. In April 2005, Agips 450-MW plant came online in Kwale in Delta State. The
NNPC and Joint Venture (JV) partners, ConocoPhillips and Agip, provided the $480 million to
construct the plant. IPPs currently under construction include the 276-MW Siemens station in
Afam, Exxon Mobils 388-MW plant in Bonny, ABBs 450-MW plant in Abuja, and Eskoms 388-
MW plant in Enugu. Several state governments have also commissioned Oil majors to increase
generation including Rivers State, which contracted Shell to expand the 700-MW Afam station.
The Nigerian government also approved the construction of four thermal power plants (Geregu,
Alaoji, Papalanto, and Omotosho), with a combined capacity of 1,234 MW to meet its generating
goal of 6,500 MW in 2006. In addition fourteen hydroelectric and Natural Gas plants were
planned for kick-up but yet to commence since then. Chinas EXIM Bank Su Zhong and Sino
Hydro have committed to funding the Mambilla (3,900-MW) and Zungeru (950-MW)
hydroelectric projects. In addition, Sino Hydro proposed that it should construct the two power
projects. Also, NNPC, in a JV with Chevron are to construct a 780-MW gas-fired thermal plant
in Ijede, Lagos State. The project is expected to be constructed in three phases, with the first two
phases expected to have capacity of 256 MW each. The plant is expected to be operational in
2007 but yet to commence construction.
While Nigerians development of the Oil sector has been good for the country’s economy, oil
sector development has had an adverse impact on the country’s environment. Oil extraction in
the Niger Delta region has caused severe environmental degradation, owing to the legacy of oil
spills, lax environmental regulations, and government complicity during military regimes that
once governed the country. Although the situation is improving with more stringent
environmental regulations for the oil industry, marine pollution is still a serious problem. Air
pollution from Natural Gas flaring, exhaust emissions from the explosion in car ownership, and
electricity generators continue to leave Lagos which is the most industrialized and most
populated city shrouded in smog. The use of solid biomass, such as fuel wood, is prevalent and
constitutes a major energy source for rural Nigerians. The production and consumption of
commercial renewable energy in Nigeria remains quite limited. With Nigerians population
continuing to increase, the pressure on the country’s environment appears likely to increase as
well, even with the added focus on cleaning up the Niger Delta and tightening environmental
laws and regulations.
Nigeria is Africa's energy giant. It is the continent's most prolific oil- producing country, which,
together with Libya, accounts for two- thirds of Africa's crude oil reserves. It ranks second to
Algeria in natural gas. Most of Africa's bitumen and lignite reserves are found in Nigeria. In its
mix of conventional energy reserves, Nigeria is simply unmatched by any other country on the
African continent. It is not surprising; therefore, that energy export is the mainstay of the
Nigerian economy. Also, primary energy resources dominate the nation's industrial raw materials
Electricity energy production in Nigeria over the last 40 years varied from gas –fired, oil – fired,
hydroelectric power stations to coal-fired with hydroelectric power system and gas – fired
system taking precedence.
This is predicated by the fact that the primary fuel sources (coal, oil, water, gas) for these power
stations are readily available. Nigeria’s coal reserves are large and estimated at 2 billion metric
tonnes of which 650 million tonnes are proven reserves. About 95% of Nigeria’s coal production
has been consumed locally; mainly for railway transportation, electricity production and
industrial heating in cement production.
Nigeria has an estimated 176 trillion cubic feet of proven natural gas reserves, giving the country
one of the top ten natural gas endowments in the world and the largest endowment in Africa.
Natural gas is a natural occurring gaseous mixture of hydrocarbons gases found in underground
reservoirs. It consists mainly of methane (70% - 95%). With small percentage of ethane,
propane, butane, pentane and other heavier hydrocarbons with some impurities such as water
vapour, sulphides, carbon dioxides, etc. [10]. Apart from the export potential of the Nigerian gas,
local demand opportunities are power generation, cement industry, iron and steel plants. The
largest single consumer of natural gas in Nigeria is PHCN and it accounts for about 70% used to
operate electricity generating gas plants at Afam, Ughelli, Sapele and Egbin.
Electricity plays a very important role in the socio-economic and technological development of
every nation. The electricity demand in Nigeria far outstrips the supply and the supply is
epileptic in nature. The country is faced with acute electricity problems, which is hindering its
development notwithstanding the availability of vast natural resources in the country. It is widely
accepted that there is a strong correlation between socio-economic development and the
availability of electricity.
The Energy Commission of Nigeria (ECN) was established by Act No. 62 of 1979, as amended
by Act No. 32 of 1988 and Act No. 19 of 1989, with the statutory mandate for the strategic
planning and co-ordination of national policies in the field of energy in all its ramifications. By
this mandate, the Commission which is the apex government organ empowered to carry out
overall energy sector planning and policy co-ordination. As part of its contribution to the
resolution of the problems of the electricity sector along the line of its mandate, the ECN has
been collaborating with the International Atomic Energy Agency (IAEA) under an IAEA
regional project titled “Sustainable Energy Development for Sub-Saharan Africa (RAF/0/016)”.
The project entails capacity building for energy planning and the determination of the actual
energy demand and the strategies for supply for each participating country over a 30-year time
horizon. The implementation of the project requires the establishment of a Working Team (WT)
and a Country Study Team (CST) both of which include the major public and private
stakeholders in the energy sector of the country. The working team consists of technical experts
that directly implement the project and reports to the CST, which serves as the steering
committee for the project on a regular basis. Members of the WT were trained on the use of the
IAEA models and have computed the Nigeria energy demand and supply projections covering
the 2005-2030. The project involves the use of the following IAEA Energy Modelling tools:
• Model for the Analysis of Energy Demand (MAED)
• Model for the Energy Supply Strategy Alternatives and their General Environmental Impact
Energy Demand Projection
The energy demand projections were computed using MAED with the key drivers of energy
demand, namely demography, socio-economy and technology. The application of MAED
requires detailed information on demography, economy, energy intensities and energy
efficiencies. This information is first assembled for a base year which is used as the reference
year for perceiving the evolution of the energy system in the future. Selection of the base year is
made on the basis of availability of data, assessment that the data are representative of the
economic and energy situation of the country.
MAED allows the breakdown of the country’s final energy consumption into various sectors and
within a sector into individual categories of end-uses in a consistent manner. The breakdown
helps in the identification of the social, economic and technical factors influencing each category
of final energy demand. In modelling the Nigeria’s energy case, four economic scenarios were
developed and used as follows:
¾ Reference Scenario - 7% GDP Growth;
¾ High Growth Scenario - 10% GDP Growth;
¾ Optimistic Scenario I – 11.5% GDP Growth; and
¾ Optimistic Scenario II – 13% GDP Growth (based on Presidential Pronouncement for
the desire to be among the first 20 economies by 2020).
Economic growth and structure of the economy are the major driving parameters in the four
scenarios. Projected electricity demand has been translated into demand for grid electricity and
peak demand on the bases of assumptions made for T&D losses, auxiliary consumption, load
factor and declining non-grid generation. Table 1 shows the electricity demand projections for
the scenarios. It must be emphasized that the demand indicated for 2005 represents suppressed
demand, due to inadequate generation, transmission, distribution and retail facilities. Suppressed
demand is expected to be non-existent by 2010.
For the 13% GDP growth rate, the demand projections rose from 5,746MW in the base year of
2005 to 297,900MW in the year 2030 which translates to construction of 11,686MW every year
to meet the demand. The corresponding cumulative investment (investment & operations) cost
for the 25-year period is US$ 484.62 billion, which means investing US$ 80.77 billion every five
years within the period. In conducting the studies, all the available energy resources in the coun-
try were considered in order to broaden the nation’s energy supply mix and enhance its energy
Table 1: Electricity Demand Projections per Scenario, MW
Scenario 2005 2010 2015 2020 2025 2030
Reference (7%) 5,746 15,730 28,360 50,820 77,450 119,200
High Growth (10%) 5,746 15,920 30,210 58,180 107,220 192,000
Optimistic I (11.5%) 5,746 16,000 31,240 70,760 137,370 250,000
Optimistic II (13%) 5,746 33,250 64,200 107,600 172,900 297,900
Energy Supply Projection
The total energy supply were computed using MESSAGE and utilizes the projected energy
demand as an input to produce a supply strategy. MESSAGE is an energy supply model,
representing energy conversion and utilization processes of the energy system (or its part) and
their environmental impacts for an exogenously given demand of final energy. It is used for
development of medium-term strategies, the planning horizon being in the order of 30 years. The
time scope is limited due to uncertainties associated with future technological development. The
energy system dynamics are modelled by a multi -period approach. It is an optimization model
which from the set of existing and possible new technologies selects the optimal in terms of
selected criterion mix of technologies able to cover a country’s demand for various energy forms
during the whole study period.
MESSAGE takes into account demand variations of various final energy forms during the day,
week and year, as well as different technological and political constrains of energy supply. It is
an energy and environmental impact model, enabling the user to carry out integrated analysis of
the energy sector development and its environmental impacts. The application of the MESSAGE
model results in a least-cost inter-temporal mix of primary energy, energy conversion and
emission control technologies for each scenario. For the computation of Nigeria’s Energy Supply
the same scenario that was used in MAED are used. The result for the electricity supply
projections is shown in table 2.
Table 2:
Scenario 2005 2010 2015 2020 2025 2030
Reference (7%) 6440 15668 28356 50817 77450 136879
High Growth (10%) 6440 15861 30531 54275 107217 192079
Optimistic I (11.5%) 6440 15998 31235 71964 177371 276229
Nigeria currently has 14 generating plant, which supply electric energy to the National Grid. Of
the 14 generating plants, 3 are hydro and 11 are thermal (gas/steam). The national grid is made
up of 4,889.2km of 330kV line, 6,319.33km of 132kV line, 6,098MVA transformer capacity at
330/132kV and 8,090MVA transformer capacity at 132/33kV.
Due to the importance of the sector, President Umaru Musa Yar’Adua, immediately after he was
sworn in on may 29th 2007, recognized the urgency of the emergency on the Sector by
specifically addressing the problems of the Sector in an urgent and immediate basis and
eliminating the usual bureaucratic time wasting procedures of treating issues of the sector, while
ensuring that Due Process is not compromised.
Accordingly, a program of action is currently being formulated to address the problems of the
Sector in the Short term, Medium term and Long term. In the next nine months in the Short
Term (2005), it may be realistic to concentrate mainly on the effective and efficient utilization of
the existing generation and transmission infrastructures as well as completing the NIPP. The
following should be achieved:
Maintaining and sustaining a minimum generation of the available capacity of 5,800MW;
Reduce Transmission and Distribution power outages by at least 75%;
Reduce Transmission and Distribution technical losses;
Increase revenue collection in PHCN by 50%;
Improve on Customer Service Delivery in the Distribution and Marketing section of
PHCN; and
Improve on Health, Safety and Environmental measures in generation, transmission and
distribution of electricity.
To achieve these, the issues that must be addressed in generation, transmission, distribution and
marketing are as follows;
The Total Installed Capacity of the currently generating plants is 7,876 MW (Table 3), but the
Installed available Capacity is less than 4,000MW as at December 2009. Seven of the fourteen
generation stations are over 20 years old and the average daily power generation is below
2,700MW, which is far below the peak load forecast of 8,900MW for the currently existing
infrastructure. As a result, the nation experiences massive load shedding.
Through the planned generation capacity projects for a brighter future (Table 4); the current
status of power generation in Nigeria presents the following challenges:
i. Inadequate generation availability;
ii. Inadequate and delayed maintenance of facilities;
iii. Insufficient funding of power stations;
iv. Obsolete equipment, tools, safety facilities and operational vehicles
v. Inadequate and obsolete communication equipment
vi. Lack of exploration to tap all sources of energy form the available resources; and
vii. Low staff morale.
1 Egbin Thermal Lagos 22 6 1320 4
2 Egbin AES Thermal Lagos 6 9 270 9
3 Sapele Thermal Delta 25-29 10 1020 1
4 Okapi Thermal Cross River 2 3 480 2
5 Afam Thermal Rivers 25 20 702 3
6 Delta Thermal Delta 17 18 840 12
7 Omoku Thermal Rivers 2 6 150 4
8 Ajaokuta Thermal Kogi Na 2 110 2
9 Geregu Thermal Kogi 1 3 414 3
10 Omotosho Thermal Ondo New 8 335 2
SUB-TOTAL (THERMAL) 93 5976 44
12 Kainji Hydro Niger 38-40 8 760 6
13 Jebba Thermal Niger 24 6 540 6
14 Shiroro Thermal Niger 22 4 600 2
SUB-TOTAL (HYDRO) 18 1900 14
GRAND TOTAL 111 7876 58
84 76 76
16 24 24
1 Egbin Thermal Lagos 1320.00 Existing
2 Afam Thermal Rivers 969.60 Existing
3 Sapele Thermal Delta 1020.00 Existing
4 Ijora Thermal Lagos 40.00 Existing
5 Kainji Hydro Niger 760.00 Existing
6 Jebba Hydro Niger 578.40 Existing
7 Shiroro Hydro Niger 600.00 Existing
8 Delta Thermal Delta 912.00 Existing
9 Orji Coal Rivers 20.00 Existing
10 Geregu Thermal Kogi 414.00 Ongoing
11 Omotosho Thermal Ondo 335.00 Ongoing
12 Papalanto Thermal Ogun 335.00 Ongoing
13 Alaoji Thermal Abia 504.00 Ongoing
14 Omoku Thermal Rivers 230.00 New IPP
15 Rain/Ube Thermal Bayelsa 225.00 New IPP
16 Sapele Thermal Delta 451.00 New IPP
17 Eyaen Thermal Edo 451.00 New IPP
18 Egbema Thermal Imo 338.00 New IPP
19 Caliber Thermal Cross River 561.00 New IPP
20 Mambilla Hydro Taraba 2600.00 New
21 Zungeru Hydro Niger 950.00 New
22 AES Thermal Lagos 300.00 Commissioned
23 AGIP Okpai Thermal Delta 480.00 Commissioned
24 Omoku Thermal Rivers 150.00 Approved IPP
25 Obajana Thermal Kogi 350.00 Approved IPP
26 Ibom Power Thermal Akwa Ibom 188.00 Approved IPP
27 Ethiope Energy Ltd 2800.00 Approved
Licenses IPP
28 Farm Electric Supply
150.00 Approved
Licenses IPP
29 ICS Power 624.00 Approved
Licenses IPP
30 Supertek Ltd 1000.00 Approved
Licenses IPP
31 Mabon Ltd 39.00 Approved
Licenses IPP
32 Geometric Ltd 140.00 Approved
Licenses IPP
33 Aba Power Ltd 0.00 Licensed
34 Westcom Tech &
Energy Service Ltd
1000.00 License
Granted IPP
35 Lotus & Bresson Nig
60.00 License
Granted IPP
36 Anita Energy Ltd 136.00 License
Granted IPP
37 First Independent
Power Co Ltd
95.00 License
Granted IPP
38 First Independent
Power Co Ltd
150.00 License
Granted IPP
39 Hudson Power Station
200.00 License
Granted IPP
40 Ibafo Power Station
640.00 License
Granted IPP
41 Shell Distribution Coy
100.00 License
Granted IPP
42 Agbara Shoeline
Power Co Ltd
1800.00 License
Granted IPP
43 Index thermal power
1800.00 License
Granted IPP
TOTAL 24,106.00
The transmission system in Nigeria system does not cover every part of the country. It currently
has the capacity to transmit a maximum of about 4,000 MW and it is technically weak thus very
sensitive to major disturbances. In summary, the major problems identified are:
i. It is funded solely by the Federal government whose resource allocation cannot
adequately meet all the requirements;
ii. It is yet to cover many parts of the country
iii. It’s current maximum electricity wheeling capacity is 4,000 MW which is awfully below
the required national needs;
iv. Some sections of the grid are outdated with inadequate redundancies as opposed to the
required mesh arrangement;
v. The Federal government lack the required fund to regular expand, update, modernize and
maintain the network;
vi. There is regular vandalization of the lines, associated with low level of surveillance and
security on all electrical infrastructure;
vii. The technologies used generally deliver very poor voltage stability and profiles;
viii. There is a high prevalence of inadequate working tools and vehicles for operating and
maintaining the network;
ix. There is a serious lack of required modern technologies for communication and
x. The transformers deployed are overloaded in most service areas;
xi. In adequate of spare-parts for urgent maintenance; and
xii. Poor technical staff recruitment, capacity building and training programme.
Distribution & Marketing
In most locations in Nigeria, the distribution network is poor, the voltage profile is poor and the
billing is inaccurate. As the department, which inter-faces with the public, the need to ensure
adequate network coverage and provision of quality power supply in addition to efficient
marketing and customer service delivery cannot be over emphasize. In summary some of the
major problems identified are:
i. Weak and Inadequate Network Coverage;
ii. Overloaded Transformers and bad Feeder Pillars;
iii. Substandard distribution lines;
iv. Poor Billing System;
v. Unwholesome practices by staff and very poor Customer relations;
vi. Inadequate logistic facilities such as tools and working vehicles;
vii. Poor and obsolete communication equipment;
viii. Low staff morale and lack of regular training; and
ix. Insufficient funds for maintenance activities.
A liaison office in the Corporate Headquarters of the PHCN which coordinates activities of the
unbundled companies pending their full privatization was also set up, with a plan that by
December 2006, all these 19 companies would take off and PHCN would be phased out.
Presently, a Chief Executive Officer can operate independent of any other unbundled company
heads each unbundled company. They all, including the Coordinator in the liaison office,
receive funds for their day-to-day operations from the market operator who disburses the funds
according to certain laid down criteria. Each company is also empowered, through with
limitations to operate as a commercial company. It is currently planned that each of the successor
companies shall operate as a fully commercialized company. The PHCN structure shall also be
retained to oversee the activities of the Managing Director/CEOs of the successor companies.
This structure should operate for a limited period of 5 years, which should be adequate time to
enable the companies to be privatized.
In addition, to restructuring NEPA Government through the NIPP and PHCN also made attempts
to develop the infrastructure in generation, transmission and distribution on fast track basis. The
aim was to improve power supply to consumers. In order to achieve that, the Federal
government in collaboration with state Government embarked on the implementation of new
generation, new gas pipelines, a new transmission and new distribution networks in 2005, using
the excess crude account. The projects were estimated to cost N1.23 Trillion out of which about
N361 billion was released.
From the above brief presentation, the following are some of the most critical challenges of the
power sector responsible for the generation short falls, transmission bottlenecks, and distribution
problems in Nigeria:
i. Poor utilization of existing assets and deferred maintenance;
ii. Delays in the implementation of new projects;
iii. Lack of sustained, sound and practicable relationship between the Federal Government
and other stakeholders particularly the JV international oil companies and the
Independent Power Producers (IPP);
iv. Inadequate power evacuation at newly completed and fictionalized power plants;
v. Erratic supply of gas domestic resources for power generation;
vi. The National Grid is yet to cover many parts of the country;
vii. Vulnerable and overloaded existing transmission system;
viii. Poor voltage profile to the tail-end consumer;
ix. Current maximum electricity wheeling capacity is 4,000 MW which is awfully below the
required national needs;
x. Some sections of the National Grid are outdated with equipments in a state of poor and
inadequate maintenance;
xi. The Federal Government being the only provider of funds to expand to the National Grid
did not commit the required funds to regularly expand, update, modernize and maintain
the sector;
xii. Regular vandalization of the gas lines, and cable lines, associated with low level of the
surveillance and security on all electrical infrastructure;
xiii. High prevalence of inadequate working tools, vehicles and spare-parts for operating and
maintaining the power system;
xiv. There is a serious lack of required modern technologies or communication and
monitoring of the generation, transmission and distribution infrastructure;
xv. Low customer satisfaction (load shedding, poor voltage profile, inaccurate billing,
difficulties in paying bills, no-notice disconnections, etc);
xvi. Poor technical staff recruitment, capacity building and training programme; and
xvii. Inappropriate tariff that would enable the utility to get adequate funds to maintain and
expand the infrastructure.
To address the challenges listed above, a drastic and innovative strategy is required, most
especially as energy generation, transmission and distribution in Nigeria for appropriate
development is a priority issue of government.
Planning and Operations
A comprehensive review of the operation and management of Power Sector targeted at
efficiency and effectiveness is required. In that respect, the following should be undertaken:
i. A detailed national load demand study should be carried out with a view to providing
reliable information on the current practical and detailed power requirements and a
futuristic forecast for the next 25 years. (The World Bank is currently supporting some
work on this);
ii. A detailed and practicable Power generation, transmission and distribution master plan
for Nigeria for today and the next 25 years should be produced;
iii. A detailed cost implication on a phased development and operating the power supply
system on state-by-state basis is required;
iv. Strategic roles of the States and Local Governments in the implication of the National
Masterplan must be explicitly stated;
v. A cost sharing formula for all tiers of Government to fully participate in the development
of national power supply must evolve;
vi. The institutional arrangement on how the Power Sector will function with the Federal
Government as the central implementation organ, working in tandem with the States and
Local Governments should evolve; and
vii. The clear roles of the States in the energy sector, specifically required to serve as the state
monitoring facility on resource contributions, utilization and system efficiency should be
To demonstrate the urgency and resource requirements on power supply which give the
additional power and resources required in countries that could be defined as less fortunate with
resources compared with Nigeria. While the Per Capita power generation ranges from 3kW to
6.6kW in those countries, the corresponding figure for Nigeria is 0.05. This is literally shameful
and unacceptable
It can be estimated that the average cost for adding a Mega Watt of electricity is US$1.5million.
This demonstrates the resources required in power supply to develop and particularly
industrialized any country on a sustainable manner, are large. Based on this index, it therefore
can be estimated that from the staggering current generation capacity of about 3,000MW in the
country, Nigeria would have to invest a whopping US$150 billion (N18 trillion) to generate
additional 100,000MW, to attain the required for full industrialization of our economy by 2020
which was computed by the Energy Commission of Nigeria using a growth rate of 13%. The
financial requirement is phenomenal.
The combined determination of Mr. President to declare a state of Emergency on power supply
in the country, and the administration’s firm commitments of industrializing Nigeria by 2020
must be taken very seriously. However, it is worth nothing closely that the Federal Government
has, since independence, remained the major financier of power supply in Nigeria. This might
have followed a political history of the country since independence, where the Military
Governments that dominated the administration, institutionalized the concept of establishing and
developing the power sector as the sole responsibility of the Federal Government. Furthermore,
under the military traditions, the Military Head of State ((Federal government) had always
directly appointed the State Governors and had dictated resource allocations to the States from
the Federation Accounts and literally also tele-guided the implementation of most capital
projects executed in the States. This scenario under a democratic system of Government as
currently practiced in Nigeria is not feasible. A deliberate and proactive strategy is required to
ensure that all tiers of Government fully participate in this National Priority sector.
It is therefore opined that, in view of the vision for power to be provided on a sustained stable
basis to the entire nation, all tiers of Government, similar to the strategy deployed on the
provision of roads/highways network that we currently operate in the country.
The concept being proposed is that, in view of the large investment required for the development
of the Generation, Transmission and Distribution networks, States and Local Government should
contribute a certain percentage of the total cost similar to the concept on road-network where all
tiers of Government participate in development, maintenance and repairs.
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40. (R14)
10. Cole, A.O.“Restructuring the Electric Power Utility industry in Nigeria”, Proc. 20th National
Conference of the Nigerian Society of Engineers (Electrical Division), October6-7, 2004, pp.1-6.
11. Matching Electricity Supply with Demand in Nigeria By A. S. Sambo
... Presently, an average of 48% of Nigerian households (15.3 million) lack access to grid electricity as can be seen in Table 1 [2]; and for those connected to the national grid, supply is epileptic to say the least. Electricity demand has been on the increase geometrically [3] while installed electricity capacity has remained relatively stable over the last decade at 5.9 GW while annual electricity generation stands at between 2Gw to 3GW [3]. This is not enough to meet the current electricity demand forecasted at 10GW [4]. ...
... Presently, an average of 48% of Nigerian households (15.3 million) lack access to grid electricity as can be seen in Table 1 [2]; and for those connected to the national grid, supply is epileptic to say the least. Electricity demand has been on the increase geometrically [3] while installed electricity capacity has remained relatively stable over the last decade at 5.9 GW while annual electricity generation stands at between 2Gw to 3GW [3]. This is not enough to meet the current electricity demand forecasted at 10GW [4]. ...
... Occupational safety and health are critical components in minimizing any hazards associated with business operations [4]. Work accidents can occur as a result of actions in the implementation of a manufacturing process in an industry [5]. In addition, Article 1 paragraph 2 of Law Number 32 of 2009 on Environmental Protection and Management defines planning, utilization, control, maintenance, supervision, and law enforcement as a systematic and integrated effort to conserve environmental functions and prevent pollution and/or damage to the environment [6,7].It is vital to examine the safety of electricity network to prevent undesirable occurrences and minimize potential dangers in order to achieve effective and efficient electricity safety at work in voltage. ...
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This study focused on the investigation of the safety condition of voltage in high voltage network pole. The study involved the use of 132KV transmission line and the safety level during which it operates under certain power condition. The interview conducted showed that when the power is on or in a stressful condition, there is high potential hazard which puts workers' safety at risk; hence hazard identification is essential at every stage of the process. The goal of this study is to identify the sources of potential workplace risks based on the four impacted classifications: the general public, work-related technical staff, installations, and the environment. The interview conducted revealed the potential hazards for the general public safety and the control measures required. The preliminary findings of this study indicate that falling objects, flash over, injured workers, scorching temperatures, improperly built aluminum and bulkhead ladders, and the existence of stressful conditions on each conductor are the sources of hazard when operating at 132 KV voltage. Hence, for the implementation of work in a 132 KV voltage state, it is recommended that every technician follow the SOP (Standard Operating Procedure), wear complete Personal Protective Equipment (PPE), and be cautious when doing work and socializing with the surrounding community.
... Consistent energy supply is required for industrial equipment, domestic (lighting and heating), transportation, and several other endeavours (Ibrahim et al., 2021). Ultimately, industrial growth attracts socio-economic growth, which many nations strive to achieve (Sambo et al., 2010;Kraus and Kraus, 2021;Kihombo et al., 2021). ...
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Several anthropogenic activities reduce the supply of freshwater to living organisms in all ecological systems, particularly the human population. Organic matter in derived wastewater can be converted into potential energy, such as biogas (methane), through microbial transformation during anaerobic digestion (AD). To address the current lack of data and values for wastewater generation in Sub-Saharan Africa, this review analyzes and estimates (at 50% and 90% conversion rates) the potential amount of wastewater-related sludge that can be generated from domestic freshwater withdrawals using the most recent update in 2017 from the World Bank repository and database on freshwater status in Sub-Saharan Africa. The Democratic Republic of the Congo (DRC) could potentially produce the highest estimate of biogas in Sub-Saharan Africa from domestic wastewater sludge of approximately 90 billion m³, which could be converted to 178 million MWh of electricity annually, based on this extrapolation at 50% conversion rates. Using same conversion rates estimates, at least nine other countries, including Guinea, Liberia, Nigeria, Sierra Leone, Angola, Cameroon, Central African Republic, Gabon, and Congo Republic, could potentially produce biogas in the range of 1–20 billion m³. These estimates show how much energy could be extracted from wastewater treatment plants in Sub-Saharan Africa. AD process to produce biogas and energy harvesting are essential supplementary operations for Sub-Saharan African wastewater treatment plants. This approach could potentially solve the problem of data scarcity because these values for Freshwater withdrawals are readily available in the database could be used for estimation and projections towards infrastructure development and energy production planning. The review also highlights the possibilities for energy generation from wastewater treatment facilities towards wastewater management, clean energy, water, and sanitation sustainability, demonstrating the interconnections and actualization of the various related UN Sustainable Development Goals.
... People that constitute these communities where coal mining activities take place, because of their low level education are ignorant of environmental obligations under the minerals and mining act, right to life, health, adequate standard of living, education, liberty and security [2,3]. Coal combustion is usually accompanied with residual incombustible ash residue called fly ash and the coal properties impact the quality of coal combustion by-products (CCBs). ...
... Approximately, the country can generate on a daily basis around 192, 000 MW using gas power plants for 24 hours at full capacity with about 5 kWh/m 2 daily solar radiation intensity if solar collectors modules employed were to cover nearly one per cent (1%) of the country land mass. Presently, despite the agreement of the Nigerian government with 12 firms to generate 975MW using solar energy in 2016 there is still no solar power plant connected to the national grid in Nigeria [20]. [22] Nigeria has diverse RESs and great potential for solar power generation more than many global leading countries in the use of solar power like China and USA [18]. ...
... Commission of Nigeria projected that the country needed to generate at least 103,000MW by 2020 if it would attain the required full economic industrialisation (Sambo, Garba, Zarma and Gaji, 2010) but so far, only about 5,150MW has been the highest electricity supply generated in the country since 1980 and according to Awoyinfa (2018) the country will need about 180,000MW to enjoy a stable electricity supply. ...
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This work examined the impact of electricity market on economic growth in Nigeria between 1971 and 2014. The supply of electricity affects the prices of outputs from the firms and industries while the demand for electricity affects how much can be supplied and the price of electricity which in turn affects final products produced. The variables used for electricity supply was a disaggregated sources of electricity generation, like oil, hydroelectric and gas, and the demand for electricity was also disaggregated into industrial and residential. Autoregressive Distributed Lag Model was employed after the unit root test showed mixed order of integration. The findings revealed that there was a long run relationship and it is significant. But the short run relationships were not significant although they all showed positive relationship with growth. It was therefore recommended that the power sector be more liberalized for more private participation both at the generation, transmission and distribution levels.
Conference Paper
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Power transmission system stands in between generation and distribution systems and remains one of the key stages in the supply of electricity. In a deregulated electricity market, such as that of Nigeria, power transmission system plays a pivotal role in the effective delivery of electricity to consumers. As a result, there is always the need for healthy transmission systems. In this study, we take a background look at the problems facing the Nigerian transmission system and its causes, with an aim to identifying the possible solutions.
The increasing population and socio-economic growth of Nigeria, coupled with the current, unmet electricity demand, requires the need for power supply facilities expansion. Of all Nigeria’s electricity consumption by sector, the residential sector is the largest and growing at a very fast rate. To meet this growing demand, an accurate estimation of the demand into the future that will guide policy makers to adequately plan for the expansion of electricity supply and distribution, and energy efficiency standards and labeling must be made. To achieve this, a residential electricity demand forecast model that can correctly predict future demand and guide the construction of power plants including cost optimization of building these power infrastructures is needed. Modelling electricity demand in developing countries is problematic because of scarcity of data and methodologies that adequately consider detailed disaggregation of household appliances, energy efficiency improvements, and stock uptakes. This dissertation addresses these gaps and presents methodologies that can carry out a detailed disaggregation of household appliances, a more accurate electricity demand projection, peak load reduction, energy savings, economic, and environmental benefits of energy efficiency in the residential sector of Nigeria. This study adopts a bottom-up and top-down approach (hybrid) supplemented with hourly end-use demand profile to model residential electricity consumption. and project efficiency improvement through the introduction of energy efficiency standards and labelling (EE S&L) under two scenarios (Business As Usual and Best Available Technology). A consumer life-cycle cost analysis was also conducted to determine the cost-effectiveness of introducing EE S& L to consumers. The results show significant savings in energy and carbon emissions, increased cooling demand due to climate uncertainty, and negative return on investment and increase lifecycle costs to consumers who purchase more efficient appliances. These results are subject to some level of uncertainties that are mainly caused by the input data. The uncertainties were analyzed based on a Monte Carlo Simulation. The uncertainties that were considered including the type of distributions applied to them were outlined and the result of the outputs were presented.
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It is evident that there is nexus among electricity consumption, foreign direct investment and aggregate economic activity. Unfortunately, the causal relationship among the three variables in Nigeria based on modern econometric methods, recent time-series data and ways that sufficiently cater for inflation and population growth has not been adequately investigated. This study, among other things, used a trivariate vector error correction model, autoregressive distributed lag bounds test for cointegration and Granger causality test to analyse the causal relationship among electricity consumption, foreign direct investment and aggregate economic activity based on time-series data from 1970 to 2018. The study found the presence of neutral causality between electricity consumption and aggregate economic activity in the short run as well as unidirectional causality from aggregate economic activity to electricity consumption in the long run. The study also found the presence of unidirectional causality from foreign direct investment to electricity consumption as well as neutral causality between foreign direct investment and aggregate economic activity in both the short run and the long run. It is therefore recommended that steps should be taken to adequately increase foreign direct investment and aggregate economic activity in ways that will guarantee an optimal increase in electricity consumption in Nigeria.
The aim of this study is to evaluate the potential impacts of 8.5 MW thermal power plant on soil and water quality within its location, Lekki area, Lagos State. The study area was geo-referenced using the existing map and Geographical Positioning System. Auger was used to sample soil at three different locations within the power plant. The soil samples were prepared and analyzed for the following parameters using standard analytical methods. The parameters include soil texture, Exchangeable cations and anions (H ⁺ , Na ⁺ , Ca ²⁺ , Mg ²⁺ , Cl ⁻ and SO 4 ²⁻ ) Nutrients compounds (NO 3 -, Total Nitrogen (TN), Organic Carbon (OC) and heavy metals (Fe, Cd, As, and Mn). Surface and groundwater samples were collected within the power plant in triplicate and analyzed for true colour, turbidity, conductivity, salinity, THC and Coliform. Dissolved Oxygen (DO), BOD 5 , Total Organic Carbon (TOC), Organic Matter (OM) and heavy metals (As, Ag, Fe and Mn) of water samples were also analyzed. The soil from the study area is loamy-sand in texture. The average As, Ag, Fe and Mn in surface and groundwater samples were 0.055, 0.025, 3.150, 0.735 and 0.12, 0.080, 6.440 and 0.180 mg/L, respectively. The gas-fired power plant has contaminated the soil and water within its premises with petroleum and heavy metals. The engine stack should be modified to minimize the pollution effects of the power plant on the environment.
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Electrical energy is the pivot of all developmental efforts in both the developed and the developing nations. Because sources of conventional energy are finite and fast depleting, most industrialized countries have started research on solar energy as a renewable source of energy. This paper presents the present state of conventional energy generation in a developing economy like Nigeria. The efforts made in solar energy research and utilization are highlighted. A case is made for a systematic and coordinated financial investment in solar energy research and adaptation to complement energy generation from conventional sources.
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Energy has always been one of the basic requirements of human societies, and today its demand is far greater than ever in our highly technological world. This is buttressed by the fact that energy is vital for human life, and for technological advancement. Presently, major electricity generation takes place at central power stations which utilize coal, oil, water, gas or fossil nuclear materials as the primary fuel sources. There are problems facing the further development of generating methods based on any of these conventional fuels. The continued large-scale use of oil and gas in countries not blessed with indigenous reserves is particularly doubtful because supplies are expensive, rapidly diminishing, and politically controlled. Hydro-electrical power generation is restricted to geographically suitable areas, and reserves of coal, although presently plentiful, are regrettably not renewable. This paper therefore looks into thermal power stations in Nigeria, the trend of the thermal power sources and makes recommendation on how to manage the nation's natural reserves for efficient, coordinated and constant power supply.
Almost all technical development efforts in both the developed and the developing nations depend on electrical energy. However, the sources of conventional means of electricity generation are fast depleting. Consequently, most industrialised nations have research on solar energy as a way to avert impending energy crisis.This paper presents the investments in energy generation in Nigeria. The efforts made in solar energy research and utilization are highlighted. The financial investments by the Nigerian government to the development of electrical power industry between 1990 and 1994 are presented and discussed. A case is made for a systematic and coordinated financial investments in solar energy research and adaptation to complement power generation from conventional sources.
Restructuring the Electric Power Utility industry in Nigeria
  • A O Cole
Cole, A.O."Restructuring the Electric Power Utility industry in Nigeria", Proc. 20th National Conference of the Nigerian Society of Engineers (Electrical Division), October6-7, 2004, pp.1-6.
Energy Commission of Nigeria
Energy Commission of Nigeria, "Energy Resources Review", vol. 4, No. 3, 2003, pp.7-10.
Thermal Power Stations in Nigeria
NEPA, " Thermal Power Stations in Nigeria ", NEPA Headquarters, Marina, Lagos, 1995, pp.38- 40. (R14)