Released October 03, 2014 | JOHANNESBURG
en
Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--Although Nigeria is believed to have the largest economy in Africa (not per capita income), it has been on a bumpy ride with sometimes over-stated goals. Sadly, more than 60 million of the country's 180 million-plus population is functionally illiterate, but the potential for economic growth is acknowledged worldwide.
Nigeria's development style has been very evident in the country's power sector since before the 1990s. With a small power grid and low investments, power development plans have disappeared down financial black holes. In the meantime, the "big men" with influence have profited with imports of standalone generators, which keep businesses and homes operational.
The chairman of the Nigerian Electricity Regulatory Commission (NERC), Sam Amadi, recently said that 118 power projects are under construction as part of an effort to tackle low generation levels. Amadi was speaking in Lagos at a meeting organized by the Nigerian-British Chamber of Commerce (NBCC).
The power sector is expected to grow from $3.7 billion in 2013 to more than $6 billion in 2016. The NERC is also working on cost-effective tariffs to ensure good returns on investment. Abadi's representative said that there were huge opportunities in all sub-sectors of the Nigerian electricity supply industry, including gas-fired generation, transmission and distribution.
But challenges in the system include gas supply, and most power plants in the country are not working at full capacity. "Almost all the 20 turbines in the gas-fired thermal plants have no gas, or very little gas available for use as generation feedstock," Amadi said.
The government was handling the gas issue as a national emergency, and was adopting short-, medium- and long-term strategies to end the power crisis. It also is exploring coal-to-power and renewable energy strategies channels for diversification, he said.
On power transmission, he said there was a need to prevail on the board of the Transmission Company of Nigeria (TCN) to ensure that the Manitoba management contract was fully implemented. "This includes sourcing of funds to strengthen and expand the transmission network," he said.
For more information, see September 5, 2013, article - China's Xian and Manitoba Hydro Win $500 Million Contract to Upgrade Nigeria's Power Transmission Network.
Nigerians were impatient with the outcome of power privatization in the country, said Adeyemi Adefulu, president of the NBCC: "We have long been discussing the issue of power generation. What we need now is to put our words into action."
Most of the privatization that was carried out in the sector was sponsored by financiers who have yet to get their money back. Adefulu called for strong regulations to safeguard the system in the interest of all players.
For related information see July 9, 2014, article - Nigeria Continues Power Development despite Toxic Conditions
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
Nigeria's development style has been very evident in the country's power sector since before the 1990s. With a small power grid and low investments, power development plans have disappeared down financial black holes. In the meantime, the "big men" with influence have profited with imports of standalone generators, which keep businesses and homes operational.
The chairman of the Nigerian Electricity Regulatory Commission (NERC), Sam Amadi, recently said that 118 power projects are under construction as part of an effort to tackle low generation levels. Amadi was speaking in Lagos at a meeting organized by the Nigerian-British Chamber of Commerce (NBCC).
The power sector is expected to grow from $3.7 billion in 2013 to more than $6 billion in 2016. The NERC is also working on cost-effective tariffs to ensure good returns on investment. Abadi's representative said that there were huge opportunities in all sub-sectors of the Nigerian electricity supply industry, including gas-fired generation, transmission and distribution.
But challenges in the system include gas supply, and most power plants in the country are not working at full capacity. "Almost all the 20 turbines in the gas-fired thermal plants have no gas, or very little gas available for use as generation feedstock," Amadi said.
The government was handling the gas issue as a national emergency, and was adopting short-, medium- and long-term strategies to end the power crisis. It also is exploring coal-to-power and renewable energy strategies channels for diversification, he said.
On power transmission, he said there was a need to prevail on the board of the Transmission Company of Nigeria (TCN) to ensure that the Manitoba management contract was fully implemented. "This includes sourcing of funds to strengthen and expand the transmission network," he said.
For more information, see September 5, 2013, article - China's Xian and Manitoba Hydro Win $500 Million Contract to Upgrade Nigeria's Power Transmission Network.
Nigerians were impatient with the outcome of power privatization in the country, said Adeyemi Adefulu, president of the NBCC: "We have long been discussing the issue of power generation. What we need now is to put our words into action."
Most of the privatization that was carried out in the sector was sponsored by financiers who have yet to get their money back. Adefulu called for strong regulations to safeguard the system in the interest of all players.
For related information see July 9, 2014, article - Nigeria Continues Power Development despite Toxic Conditions
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
