Nigeria’s Ambitious Power Target - 5,000 MW Added by May and 10,000 MW Total by End 2007

Researched by Industrial Info Resources (Sugar Land, Texas). With $2 billion invested to date in a program to put eleven new power stations into operation before the country’s President Obasanjo hands over power in May 2007, Nigeria is aiming to add 5,000 MW to the national grid and avert an increase in critical power shortages.

Early in December, major power systems failures were blamed on the Power Holding Company of Nigeria (PHCN) as explosions at the Benin and Egbin power stations were reported to have reduced the nation’s generation capacity from 3,500 MW to 2,000 MW. The average availability of power to domestic and industrial users was only four to six hours a day. Lagos, the commercial capital of the country, has fared the worst in terms of power outages with supply of electricity available for only two hours on some days.

A Catch 22 situation occurred when PHCN reported that transformers that were taken away for repairs in Lagos had not been returned, as no power was available in the PHCN workshops in suburban Lagos.

Damage to gas pipelines by militants in the Niger Delta cut power output and caused disruption of power projects undertaken by oil majors in the region, delaying construction by at least six months. Government contractors have been unable to repair installations because of the confrontational moves of the militants.

The special adviser on electric power to President Obasanjo, Joseph Makoju said at a news conference that the first of the eleven scheduled power stations, the 400 MW unit at Gereghu in Kogi state, would be commissioned in January 2007.

Other power stations in the project scheme are: 335 MW Omotosho in Ondo; 335 MW Kpakpalatu in Ogun; 500 MW Alaoji in Abia; 600MW Afam in Rivers; 450 MW Okpai in Delta; 500 MW Sapele; 350 MW Egbema in Bayelsa; 350 MW Baraobie in Imo; 500 MW Calabar and 350 MW Edo.

Makoju said that the old state power utility NEPA had been developed into 18 separate autonomous companies in readiness for privatization. He said that no country in the world had been able to evolve from a subsistence economy and move towards industrialization, macro-economic stability and economic growth without first building an adequate and reliable electricity infrastructure that meets power needs. He added that during the five years of the reform program much had been done on reform of the structure, culture and value change management process of the sector.

So far the Nigerian Electricity Regulatory Commission (NERC) has granted eight licenses to private power companies for a total generating capacity of over 4,700 MW. (This is in addition to the 11 current 5,000 MW projects.) Another license has been granted for independent power distribution in Abia state. To attain the presidential target of 10,000 MW of national grid capacity by the end of 2007, unprecedented dedication and fast-tracking of some projects will be needed to jack up the chronically disappointing history of Nigerian power capacity building and successful deregulation of the sector. Over the past two decades many projects have been announced.

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