Opportunities in the Nigerian Power Sector

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by the Federal Government hence, the

Introduction
To

meet

the

targets

set

out

in

the

programme Vision 20:2020; the Federal

need for private investment.

Government of Nigeria has set a generating

Generation
The National Council on Privatisation (NCP)

target of 40,000 MW. Moreover, to reach this

and the Bureau of Public Enterprise (BPE) on

relatively

require

behalf of the Federal Government have

investments in power generating capacity

placed an advert for by core investors to

alone will require at least USD$35 billion i.e.

express their interest in the thermal power

investing US$3.5 billion over a period of 10

stations and as concessionaires for the

years and an additional US$15 billion will be

hydro power stations through International

required in the other parts of the supply

Competitive Bidding (ICB).

chain i.e. fuel-to-power infrastructure, and

Transactions will include:

the



modest

power

ambition

transmission

will

and

distribution

Ughelli Power Plc in Delta Area with

networks. This comes to a total expected

capacity of 972 MW

investment in the power sector to USD$50



billion

capacity of 414 MW

over

conservative

the

next

estimates.

10

years

These

using

required

investments will not be funded and directed



Geregu Power Plc in Kogi State with
Afam Power Plc in River State with

capacity of 776 MW



Sapele Power Plc in Sapele, Delta State

with capacity of 1020 MW

the network infrastructure.
Distribution

Transmission
The

Government's

target

to

raise

transmission capacity from 330kv to 700kv is
being aggressively pursued as it has made
investment

in the expansion, reliability and stability of

of

USD

$3.5

billion

for

construction of a 700kv super transmission
grid that would enable power generation
companies to transmit more than 6000MW
of electricity by 2011.
It is imperative that new investments are
pushed forward as rapidly as possible. To
this end, the Transmission Company of
Nigeria (TCN), as management contractor,
will be responsible for significant investments

 The NCP and BPE on behalf of the Federal
Government have placed an advert for
expression of interest to privatise the Power
Holding
through

Company
an

of

Nigeria

International

(PHCN)

Competitive

Bidding (ICB) from December 14 2010.
 The Federal Government is planning to use
the Core Investor Sale Plan by relinquishing
51 per cent of its holdings in PHCN to core
investors and the remaining may be thrown
up

for

grabs

Governments

by

and

interested
Nigerian

State
workers

especially those in the power sector slated
to take place between May and June 2011.

 11

distribution

companies

to

be

 Secure a noticeable increase in the

privatised include Abuja, Benin, Eko,

average number of hours of electricity

Ikeja, Kano and five others; all having

supplied to consumers by April 2011.

coverage of the geographical zones in
Nigeria.
 The current infrastructure is made up of

Opportunities open to investors include the
following:

60,000 km of 33 Kilovolts (KV), 11KV, 415

 Additional

investment

KV and 220 KV which aid the distribution

network

support

process of electric power to the final

transmission plan

consumers.
Government is to;
network by about 20%;

and

generating companies
meet demand of end-users
 This will result to improved revenue

distribution

losses

(technical and non-technical) by at least
5% by April 2011

generation

 Production and distribution of meters to

 Increase the capability of the distribution
aggregate

distribution

 To be core investors in existing power

 The immediate distribution target of the

 Reduce

to

in

collection

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