Challenges of Financing in Housing Development in Nigeria

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  • Topic: Energy development, Electric power transmission, Electricity distribution
  • Pages : 21 (7308 words )
  • Download(s) : 150
  • Published : May 10, 2013
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Introduction
The history of electricity development in Nigeria can be traced back to the end of the 19th century when the first generating power plant was installed in the city of Lagos in 1898. From then until 1950, the pattern of electricity development was in the form of individual electricity power undertaking scattered all over the towns. Some of the few undertaking were Federal Government bodies under the Public Works Department, some by the Native Authorities and others by the Municipal Authorities. ELECTRICITY CORPORATION OF NIGERIA (ECN). By 1950, in order to integrate electricity power development and make it effective, the then colonial Government passed the ECN ordinance No. 15 of 1950. With this ordinance in place, the electricity department and all those undertakings which were controlled came under one body. The ECN and the Niger Dam Authority (NDA) were merged to become the National Electric Power Authority (NEPA) with effect from the 1st of April 1972. The actual merger did not take place until the 6th of January 1973 when the first General Manager was appointed. Despite the problems faced by NEPA, the Authority has played an effective role in the nation's socio-economic development thereby steering Nigeria into a greater industrial society. The success story is a result of careful planning and hard work. The statutory function of the Authority is to develop and maintain an efficient co-ordinate and economical system of electricity supply throughout the Federation. The decree further states that the monopoly of all commercial electric supply shall be enjoyed by NEPA to the exclusion of all other organisations. This however, does not prevent privy individuals who wish to buy and run thermal plants for domestic use from doing so. NEPA, from 1989, has since gained another status-that of quasi-commercialization. By this, NEPA has been granted partial autonomy and by implication, it is to feed itself. The total generating capacity of the six major power stations is 3,450 megawatts. In spite of considerable achievements of recent times with regards to its generating capability, additional power plants would need to be committed to cover expected future loads. At present, efforts would be made to complete the on-going power plant projects. Plans are already nearing completion for the extension and reinforcement of the existing transmission system to ensure adequate and reliable power supply to all parts of the country. By 1970, the Military Government appointed a Canadian Consultant firm "Showment Ltd" to look into the technical details of the merger. The report was submitted to the government in November 1981. By Decree No. 24 the ECN were merged to become the NEPA with effect from April 1, 1972. The actual merger did not take place until the 6th of January 1973 when the first General Manager was appointed. The day-to-day running of the Authority is the responsibility of the Managing Director. In the early 1960s the Niger Dam Authorities (NDA) and Electricity Corporation amalgamated to form the Electricity Corporation of Nigeria (ECN). Then, immediately after the Nigerian civil war, the management of ECN changed its nomenclature to NEPA. What is currently referred to as the Power Holding Company of Nigeria was formally known as National Electric Power Authority. For several years, despite consistent perceived cash investment by the Federal Government, power outages have been the standard for the Nigerian populace, however citizens of the country still do not see this as normal. Generally, the tariff has been criticized as being too low compared to the cost of generating power. The federal government of Nigeria has increased the tariff to attract foreign investors since the 1st of July, 2010 in order to meet the growing concern for foreign investors into the electricity sector.

Electricity plays a very important role in the socio-economic and technological development of every nation. The electricity demand...
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