Electricity shortages significantly impede nigeria s economic growth. Nigeria has been battling with the problem of power generation, that would meet the growing demand both on the small and large scale. Broadly, the challenge with effective and efficient electricity supply in the postprivatized electricity market in nigeria can be summarised in one word. Abstract the objective of this paper is to examine the problems and prospects of electricity power supply in. Nigeria can provide itself completely with selfproduced energy. In 1951 the electricity corporation of nigeria ecn was established, followed by the niger dams authority nda in 1962 nerc, n. On first of april 1972, the operation of electricity cooperation of nigeria and niger dam authority were merged in a new organization known as national electric power authority nepa, sole and exclusively responsible for power generation and distribution of electricity in nigeria. The nigerian power sector is controlled by stateowned power holding company of nigeria. This creditably improved the electric power supply in the country through grid connection of generation, transmission and distribution of electricity.
Electricity generation and the present challenges in the nigerian. As stated earlier, generation of electricity in nigeria currently lies in the hands of 6 gencos which are listed below. Energy plays a vital role in the development of any country. Pdf electricity generation and the present challenges in. Introduction it is a widely acknowledged fact that erratic power supply in nigeria is the bane of economic and industrial development in the country. Nigerias electricity supply industry highlights nigerias electricity supply industry highlights it is almost impossible to discuss the growth potential of the nigerian economy without recourse to the challenges in the power sector. Over half of the population 55% has no access to gridconnected electricity and those who are connected to the grid suffer extensive power outages. On dark nights, one could insert batteries into torchlights, push buttons and light would come out in streams. Privatisation arises when government transfer itr s owne ship rights in the public sector to the private organisations. Nigeria has an estimated 176 trillion cubic feet of proven natural gas reserves.
The daunting challenges of the nigerian electricity supply industry. The present situation in nigeria is that energy supply does not meet the energy demand. The book starts by introducing the basic theories underpinning the politics of. To transmit electricity in the most efficient and effective manner. Currently nigeria uses four different types of energy. Practical solutions to nigerias electricity crisis. At present, less than half of nigeria s population has access to gridconnected electricity.
Nigeria s primary energy consumption was about 108 mtoe in 2011. Calculate the costs of electricity generation in nigeria and in comparable international. Pdf electricity and energy transition in nigeria norbert. The daunting challenges of the nigerian electricity supply. Compared with the existing costs of power in nigeria mainly generators, there is a very strong case for quite radical interventions. Electric power sector reform act 2004 laws of nigeria. The electricity demand in nigeria far outstrips the supply and the supply is epileptic in nature. The logarithmic mean divisia index lmdi method of decomposition that was used. We disseminate the latest electricity news, jobs, analysis and education programs in realtime.
In the prevailing circumstances in nigeria where funds availability is progressively dwindling, creative and innovative solutions are necessary top address the power supply problem. Energy is considered as the most important resources of any country. South african energy is dominated by coal, which is plentiful and cheap, and. Sambo introduction electricity plays a very important role in the socioeconomic and technological development of every nation. The total production of all electric energy producing facilities is 29. K ezugwu abstractthis study focuses on nigeria energy resources and its consumption. This paper aims at discussing the major factors affecting electricity generation, transmission and distribution in nigeria. The electricity in nigeria is generated from hydro stations and thermal stations. Bridging the electricity metering gap in nigerias electricity supply industry nerc had, in march 2018, introduced the meter asset provider map regulation, in a bid to improve access to meters in the industry and ease the metering gap. In 1951, the government of nigeria, through an act of parliament, established the electricity commission of nigeria ecn to regulate and operate the power supply systems in nigeria. The rest is from fossil fuels 16% and hydropower 1%. However, given the myriad issues that have hampered the. 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.
A summary of the existing power sector in nigeria, current key initiatives, and opportunities and challenges for developers, investors and lenders. The economy of any country thrives directly or indirectly on the availability of electricity in the country. The paper presents new measures from the doing business getting electricity ge indicator for 190 economies, namely macro data for electricity tariffs and power outages. Technical issues and solutions article pdf available december 2011 with 25,047 reads how we measure reads.
Comparison of costs of electricity generation in nigeria. Apr 23, 2020 your onestop shop for all electricity affairs focal to the activities of the nigeria electricity hub neh is the circulation of knowledge of the workings of the power and energy industries. Nigerias power generation dates back to 1896, when two gensets portable generators that can independently produce electricity began supplying the then colony of lagos nerc, n. Having firmly and solemnly resolve, to live in unity and harmony as one indivisible and indissoluble sovereign nation under god, dedicated to the promotion of interafrican solidarity, world peace, international cooperation and understanding. This book, nigerian electricity law and regulation is a pioneering work in the complex field of power sector governance in nigeria. However, its power sector is performing below the level of its peer countries. It is listed on the nigerian and johannesburg stock exchange. Analysis of household energy consumption in nigeria kayode, r. The effect of control measures in the power sector reforms on. The power sector reform in nigeria has come with both pains and gains, with the former taking the shine off the noble intents of the privatization exercise. At present, less than half of nigerias population has access to gridconnected electricity. The management of electricity power supply in nigeria problems and prospects dr. S o uwaifo with brilliant insights into the workings of the electricity corporation of nigeria and the electric utility industry at large.
Nigeriaselectricitysupplyindustryhighlights kpmg nigeria. In 2009 nigeria was not among the top ten crude oil producers, but it was the fifth oil exporter 102 mt. An economic assessment of the reform of nigerian electricity market. Both grid extension and offgrid solutions will be needed to achieve this target. The cost of electricity in nigeria by adesiji rabiu t his article explores the cost of electricity in nigeria, a developing nation with 140 million inhabitants and an epileptic supply of electricity. Pwcs annual power and utilities roundtable the challenges. Access to electricity, rural % of rural population nigeria world bank, sustainable energy for all se4all database from the se4all global tracking framework led jointly by the world bank, international energy agency, and the energy sector management assistance program. Opportunities and challenges for investment in 2016. Phcn, formerly known as the national electric power authority. Show full abstract nepa was the governmentowned utility company responsible for generation, transmission and distribution of electricity throughout nigeria. It is the aim of nigeria s power sector to effectively transmit power to all. Electricity supply in nigeria dates back to 1886 when two 2 small generating sets were installed to serve the then colony of lagos. Collectively, 188 million children attend schools not connected to any type of electricity supplya n umber of people greater than the populations of nigeria, bangladesh, russia or japan.
Practical solutions to nigerias electricity crisis practical solutions to nigerias electricity crisis on july 24, 2016 7. Nigeria is the biggest economy in africa, with a gdp of usd569 billion 2014. Three out of the four above resources used for energy production in nigeria are linked with increasing greenhouse gas emissions. Transmission company of nigeria tcn was incorporated in november 2005. Electricity generation and distribution in nigeria. For convenience the factors are group into two, namely factors affecting electricity generation and factors. Subsequent to the introduction of the electric power sector reform act in 2005, nepa transformed into the power holding company of nigeria. A guide to the nigerian power sector kpmg in nigeria september 2016. Nigeria electricity supply industry, energy, power reliability. Problems of electricity in nigeria top 10 causes and solutions the economy of any country thrives directly or indirectly on the availability of electricity in the country. About one year ago, the minister of power, reported about the shortage of power up to 6,000 mw, where nigeria needed about 12,000 mw. This is also in contrast with other developing countries which have a more. Overview of the nigerian power sector american journal of.
The irregular power supply in nigeria is a constant problem for the rural areas of the country. Pdf power infrastructure and electricity in nigeria. Nigerian electricity regulatory commission nerc is an independent regulatory body with authority for the regulation of the electric power industry in nigeria. Electricity commission of nigeria ecn to regulate and operate the power supply systems in nigeria. An economic assessment of the reform of nigerian electricity. Typically, electricity is generated from hydro stations, wind farms or thermal stations. Nigeria, a country of over 160 million people has for the past 33 years of establishment of the national electric power authority nepa an agency empowered with the electricity generation. Objectives of the study the main objective of this study is to examine the effectiveness of control measures in the power sector reforms on electricity development in nigeria. This paper examined power infrastructure and electricity in nigeria 1. The objective of the paper is to test the relationship between electricity.
This paper investigates the factors that influences the change in co2 emissions from electricity generation in nigeria. Nigeria electricity hub latest power sector information. Some technical issues were raised and solutions proffered taking the awka business unit of power holding company of nigeria, phcn as a case. Nigeria is endowed with large oil, gas, hydro and solar resource, and it already has the potential to generate 12,522 megawatts mw of electric power from existing plants, but most days is only able to generate around 4,000 mw, which is. Electricity and energy transition in nigeria provides readers with a detailed account of the dynamics of energy infrastructure change in nigerias electricity sector. Current electricity generation is primarily from either gasfired or hydro power plants, with natural gas the main fuel source for power generation in nigeria. Matching electricity supply with demand in nigeria international. In the context of the developing economies, the growth in energy consumption is associated with urbanisation and economic development through the. Most of the energy comes from traditional biomass and waste, which account for 83% of total primary production. Power generation and supply is one of the key indicators of economic prosperity for a country. Oando is nigeria s largest oil company, headquartered in lagos. It essentially aims at bridging noticeable gaps in the literature on legal, policy and institutional frameworks of the electricity regime in nigeria. The federal ministry of power formulates and implements policies of the federal government of nigeria fgn for the development and efficient operation of the nigerian electricity supply industry nesi.
To be the leading electricity transmission company in the world. Pdf electricity generation and the present challenges in the. Pdf electricity generation and distribution in nigeria. Nigeria has oil reserves of about 35 billion barrels 5. Some parts of the country have little or no access to the national grid, while in other areas electricity is only available. Your onestop shop for all electricity affairs focal to the activities of the nigeria electricity hub neh is the circulation of knowledge of the workings of the power and energy industries.
Darkness invisible and until the evening, 261 and 271 pages. Before discussing the electricity tariff structure in detail, a slight overview of the entire power system structure in nigeria would be very helpful in 2005, the electric power sector reform act resulted in the dismantling of the power holding company of nigeria phcn into 18 companies 6 generating, 1 transmission, and 11 distribution companies. Ijewere department of business administration university of benin, benin city. The nigerian power sector is controlled by stateowned power holding company of nigeria phcn, formerly known as the national electric power authority nepa.
Know more about nigeria s electric utility industry from one of its longest serving engineers. The paper updates in time and methodology those studies. The energy produced by nda was sold to the electricity corporation of nigeria for distribution and sales at utility voltages. Electricity tariffs, power outages and firm performance. Matching electricity supply with demand in nigeria by a. The regulation, which became effective on 3 april 2018. Electricity generation and the present challenges in the. Nigerian power sector is there light at the end of the tunnel. The existence and size of the black economy as relating to the use and abuse of electricity is highlighted and various hypotheses of this research reject the energy ladder theory which assumes a step wise transition into more sophisticated. President, nigeria 1999 2007 the title, conversations in electric utility engineering, had me thinking about processes of obtaining electric light, as we tend to do these days. Access to electricity, rural % of rural population nigeria. Nigeria has been battling with the problem of power generation, that would. To achieve universal access to electricity by 2030, nigeria will need to connect between 500,000 to 800,000 households per year. Subsequently, the niger dam authority nda was established for the development of the kainji hydroelectric dam.
It is crucial and unavoidably necessary for both human existence and a nations development. Nigeria is the largest economy in subsaharan africa, but limitations in the power sector constrain growth. From the generating companies to the distribution companies, the components used to supply electricity are old and outdated, hence they perform poorly and do not supply the expected amount of electricity. With the abundant human and natural resources the country is blessed. Introduction during the launch of power africa in 20, president barack obama declared access to electricity is. Energy is critical to the survival and expansion of any economy, but in nigeria, energy consumption has been skewed towards household use, and below thresholds for sector driven growth. Tcn emerged from the defunct national electric power authority. These pieces of legislation included the constitution of the federal republic of nigeria 1999 the 1999 constitution, the electricity act, cap 106, laws of the. Nigeria is endowed with large oil, gas, hydro and solar resource, and it already has the potential to generate 12,522 megawatts mw of electric power from existing plants, but most days is only able to generate around 4,000 mw, which is insufficient. Study of nigeria energy resources and its consumption engr c. The research involves all the activities of phcn as contained in the data available in annual reports and other government agents concerned with data collection like the central bank of nigeria 2011 primary data. Study of nigeria energy resources and its consumption.
This guide provides a general overview of the nigerian power sector and sets out the legal and regulatory framework applicable to the sector. Energy consumption in nigeria the most important measure in the energy balance of nigeria is the total consumption of. The department of energy has, since its establishment in 2009, been responsible for ensuring secure and sustainable provision of energy for socioeconomic development. Deregulation of electricity sector in nigeria has brought to the fore, the need to explore power generation options for the improvement of power capacity, reliability, and availability. Oando is nigeria s largest nongovernment owned company in the energy industry. The daunting challenges of the nigerian electricity supply industry christie etukudor ademola abdulkareem olayinka ayo department of electrical and information engineering, covenant university, ota, nigeria abstract the future state of the nigerian electricity supply industry nesi is seemingly beginning to look promising. 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 nigerian energy supply crisis refers to the ongoing failure of the nigerian power sector to provide adequate electricity supply to domestic households and industrial producers despite a rapidly growing economy, some of the worlds largest deposits of coal, oil and gas and the countrys status as africas largest oil producer. Abstract the objective of this paper is to examine the problems and prospects of electricity power supply in delta and edo states.
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