Power Infrastructure

Overview

  • Pre-Privatization in 2013, for decades, no new generation plants, whether thermal or hydro, were built in Nigeria
  • Post-Privatization to 2018, the power sector has not delivered the promises of development envisaged by the reform program
  • Electricity supply has not improved, yet average wholesale cost of electricity
    generation has gone up by over 120% since 2015
  • Majority of the sector players are in financial distress
  • Generation capacity is above 11,000MW but actual production consistently
    averages below 4,000MW. Transmission remains the weak link with 5,000MW capacity untested

Policy Objectives

  • Review of entire industry legal and regulatory framework to ensure market viability
  • Ensure coordination of investments in the Power Sector in Generation, Transmission and Distribution
  • Ensure effective regulatory environment to deliver contract-based electricity market compliant with market rules
  • Intensify rural electrification projects to ensure electricity access to over 80 million Nigerians currently without access to grid electricity
  • Implement reforms and policies that would restore investor confidence in the Nigerian Electricity Supply Industry

What we shall do

  • Allow NERC to perform its regulatory functions without interference and guarantee its independence
  • Review the Aggregated Technical, Commercial and Collection (ATC&C) losses existing in the power networks and extract firm commitments for a revised ATC&C Loss reduction target from the Distribution companies
  • Create an environment that would enable Distribution Companies recover full costs for power supplied to their consumers
  • Introduce creative solutions towards addressing the huge debt overhang and liquidity challenge in the power industry
  • Ensure enforceability of industry contracts
  • Upgrade the transmission grid
  • Adopt short-term emergency measures