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Enhancing nigerias power supply through enhanced ppp programme
1. Enhancing Nigeria’s Power Supply Through
Enhanced Public Private Partnership Program
Muhammed Santuraki C.Eng. (IMMM)
2. Key Facts:
Nigeria is a constitutional Republic.
Located in West Africa, and shares land
borders with Benin in the West, Niger in
the north, and Cameroun and Chad in
the East.
With a Population of 170 million,
Nigeria is the largest country in Africa,
and the seventh largest in the world.
The country is made up of 36 States and
the federal capital territory, Abuja.
Land Area: 923,768 KM2 (32nd)
Currency: Naira (1USD = 200 Naira).
International Dialing code: +234.
Time: (UTC +1).
GDP :$448.495 billion (30th).
GDP per capita: $ 2,722 .
Nigeria- A Country Overview
Nigeria
3. Nigeria accounts for almost half the population of West Africa
and more than 15% of the Population of the African continent.
Nigeria’s Population is expected to reach 230 million in the
next 20 years.
GDP growth rate averaged 7% since 2007, which makes Nigeria
one of the fastest growing economies in the world.
Nigeria’s economy is currently the largest in Africa.
With a population of 170 million, Nigeria generates only 5,000
megawatts of electricity, compared to South Africa with a
population of 50 million which generates 40, 000 megawatts.
In a nutshell Nigeria is a big and power hungry country.
Country Overview Cont’d
4. With generation is around 5,000 MW , Only 40% of the
population currently have access to electricity supply.
Immediate power requirement is estimated at 15,000
MW
It is estimated that around 40,000 MW will be required
by 2020.
It is estimated that annual investment of USD 3.5 billion
is required over the next 10 years.
With falling oil revenues, government cannot provide
the capital investment required.
Current Status of Power Supply
6. Government Expenditure Vs
Actual Requirement
To achieve the immediate power requirement of 15,000 MW, annual investment of
USD 3.5 billion is required over the next 10 years.
Obviously, government alone can not provide the huge capital required to achieve the
power sector targets.
Hence, private capital is required through PPP.
7. Based on the current scenario, renewable energies
through PPP’s offer the best solution due to rapid
deployment and cost competitiveness.
Nigeria has abundant potential for renewable energy
such as solar, wind and hydro.
Solar is particularly more attractive due to its cost
decrease (60%) over the last few years.
Nigeria’s solar potentials is one of the highest in the
world.
Suggested Way Forward
10. Nigeria is blessed with abundant solar
irradiation.
Solar provides clean renewable
energy that can be deployed quickly.
Solar energy can provide life line for
businesses especially in rural areas.
Solar can create employment
opportunities, curb crime
reduce rural – urban migration.
Nigeria’s Solar Potentials Cont’d
Comparison of Nigeria's solar potentials with
selected countries.
12. The federal government of Nigeria needs to leverage on the private
sector to provide much needed capital and expertise to achieve its
power sector targets. This can be achieved through the following:-
Re-organising and re-training the Infrastructure Concession Regulatory
Commission (ICRC).
Creating a comprehensive and prioritized power infrastructure
investment plan.
Identifying power projects that are well suited for PPP.
Developing a sound business plan with clear commercial incentives to
attract private capital.
Putting in place a sound regulatory scheme and comprehensive PPP
framework.
Leveraging on PPP to Achieve
Power Sector Targets
13. Selecting the right private sector partners through open,
transparent and competitive bidding process.
Tracking performance of PPP projects through continuous
monitoring and evaluation.
Cultivating an enabling environment for PPP’s through
comprehensive legal, institutional framework.
Establishing a rigorous program management by involving
stake holders, standardized communication and reporting
system.
Leveraging on PPP to Achieve Power
Sector Targets Cont’d
16. Nigeria has already made a lot of positive initiatives in
the power sector through the power sector reform act
2005. The key improvements are :-
Privatisation of government owned power plants.
Development of competitive market price for energy.
Establishment of a wholesale buyer called the bulk
electricity trading company.
Providing partial risk guarantee for power producers
through world bank assistance.
Power Sector Reforms Cont’d
18. Based on the acute power shortage and immediate need to
improve the sector, private sector capital and expertise is
required.
This can be achieved through pursuing an effective PPP
program that incentivises investment in the power sector.
Based on resource availability, competitive cost,
environmental friendliness and quick deployment renewable
energy especially solar can provide accelerated
improvement in the power sector in Nigeria.
Once government set the ball rolling with a few successful
projects, it will encourage huge private sector funding,
foreign investment and international donor assistance.
Conclusion