This alert provides a brief summary of the existing power sector in nigeria and key aspects of the reforms currently being implemented. The nigerian power sector reform is necessitated by the chronic poor performance of the sector and has as its compass the 2005 electric power sector reform act and the roadmap for power sector reform 2010. The power sector is arguably the most important industry in any country. Nigeria power sector privatization program appraisal. The power generation capacity available is far below the estimated growing demand for electricity. Beks dagogo jack fnse chairman, presidential task force on power, nigeria theme. Nigeria faces a range of challenges implementing the power sector reform roadmap, and providing comfort for private sector investment into its privatised power market is one of the main challenges. Its primary goal was to achieve stable electricity supply in nigeria. In the 1950s and 1960s the nigerian government created the electricity corporation of nigeria to control all existing dieselcoal fired isolated power plants acr. The 2015 elections marked, for the first time in nigerias. Babatunde raji fashola, yesterday reasserted that the challenges plaguing the power sector in the country were mainly manmade and not technical. A major step taken by the administration of president goodluck ebele jonathan g cfr. The president launched a new power sector roadmap on 26th august, 2010, which outlines governments plan to.
Power sector reforms in nigeria likely effects on power. Pdf on apr 10, 2017, wale arowolo and others published market reform in nigeria power sector. Presidential task force on power the presidential task force on power ptfp was established in 2010 to drive the implementation of the reform of nigerias powersector. Update on the roadmap for nigerian power sector reform. Electric power sector reform transfer of assets, employees, liabilities, rights and obligations order no. At present, less than half of nigerias population has access to gridconnected electricity. A summary of the journey 32 strategy of the reform. In contrast to past reforms, continued leadership from the head of government and ownership of a detailed road map of reform have so far signalled to investors that this government is committed to reform in the long run. At the end of the day, the former very popular national electric power authority nepa was replaced by the power. Nigeria is now the largest economy in africa with a 20 gdp estimate of. The federal government of nigeria launched a farreaching set of power sector reforms in 2001 that led to the unbundling and subsequent privatisation of electricity generation and distribution.
The guardian nigeria newspaper brings you the latest headlines, opinions, political news, business reports and international news. To remedy these issues, the nigerian government moved to privatise the power sector with the electric power sector reform map of 2005 and the launch of the roadmap for power sector reform in 2010. Nigeria investmentbrief page4 withthederegulationoftheindustry,thefollowingarepotentialinvestmentopportunitiesforprivate. Deregulation of the nigerian power sector on performance. Nigeria has been going through a number of challenges in its. Guide to the nigerian power sector kpmg international. Pdf evaluation of the roadmap to power sector reforms in a. From electric cars, to offices, hospitals, to the the lights in your bathroom when you wake up at night. The power sector reform is just regaining its momentum under president jonathan. The nigeria experience 199 oil is the third main source of energy, and it is nigerias major sources of revenue. Status report on the nigeria power sector reform presented at the annual west african power industry convention wapic 2012 lagos, nigeria november 19 21, 2012. And that is why a well organized power sector can make or break a country. Opportunities and challenges article pdf available in journal of energy in southern africa 183 august 2007 with 12,716 reads how we measure reads.
The ministry in discharging this mandate is guided by the provisions of the laws provided under national electric power policy nepp of 2001, the electric power sector reform epsr act of 2005, rural. Electric power sector reform act 2004 laws of nigeria. The recent roadmap to the reform of electricity industry in the country is a veritable pointer to this argument. The nigerian power sector reform has created more opportunities for investors attributable to the increasing demand for sufficient supply of meters, transformers, cables, transmission towers and other generation, transmission and distribution facilities.
The federal government in 2000 adopted a holistic approach of restructuring the. Nigeria the economic and power sector reform program. The former national electric power authority nepa was replaced by the power holding company of nigeria phcn, which was unbundled into separate. Outline of presentation international platform for. Opportunities and challenges for investment in 2016. Historically, the nigerian power sector has been plagued by blackouts.
It highlighted some of the challenges such as severe electricity crisis due to the appalling state of power. The third section focuses on the impact of governance reforms on performance in terms of efficiency. Nbet and a fiveyear taxfree period for investment in renewable energy. The primary and secondary data were subjected to statistical analyses using tables and graphs. The national electric power policy 2001 and the resulting electric power sector reform act 2005 removed the monopoly of the vertically integrated national electric power authority and unbundled it into six generation companies gencos, eleven distribution companies discos. Pdf evaluation of the roadmap to power sector reforms in. Political economy of nigerian power sector reform unuwider. The push for the power sector reform in nigeria is buoyed by the traditional inadequate electricity supply, incessant power outages, low generating capacity. The majority of reserves are found along the countrys costal niger delta. Investment brief nigeria may 2015 united states agency.
Power sector reforms in nigeria started under the national electric power authority nepa. Nigeria power sector privatization program appraisal report. Electric power sector reform act arrangement of sections part i formation of initial and successor companies and the transfer of assets and liabilities of the national electric power authority section 1. A summary of the existing power sector in nigeria, current key initiatives, and opportunities and challenges for developers, investors and lenders. Developing the solid minerals sector quick wins for the new. Mar 10, 2012 roadmap for power sector reform chapter 1. Ministry of power, works and housing nigeria wikipedia. Energy demand and generated between 19832003 years energy generated in gwh peak max.
This study seeks to examine the power sector reforms, effects on electric power supply reliability and stability in nigeria. This case study examines the ambitious power sector reforms being pushed through by the federal government of nigeria. Taxfree dividends during the tax free period where the. To harness the power generation potentials of dams across the country for better. Nigeria power sector guarantees project english abstract. It comprehensively thrashes out and proffers detailed short, medium and long term solutions to specific challenges faced in the privatization and transformation process mandated by the epsra. Fgn power reform agenda fgs reform of power sector is gingered mainly by the need to reduce the cost of doing business in nigeria in order to attract new investment through provision of quality and dependable power supply to the economy for industrial, commercial and sociodomestic activities. Key tasks and milestone dates contdref nopresidential task force on power jun10 jul10 aug10 sep10 oct10 nov10 dec10 jan11 feb11 mar11 apr11 may11 jun11 regulatory and transactions. As at 2005, nigeria proven crude oil reserve stands at 35. Investment brief for the electricity sector in nigeria usaid. An economic assessment of the reform of nigerian electricity. Nigerias power sector is unbundled and largely privately owned. Nigeria power sector guarantees project english the.
Economists estimate that power outages have cost nigeria, africas biggest economy, billions of. Roadmap for power sector reform, pwc analysis total. As an alternative to the taxfree period, additional investment allowances of 35%. Pdf electricity as a vital tool in national development is receiving increasing attention from various regimes of government in nigeria. Phcn has finally be dissolved and replaced by the succession companies. The roadmap for power sector reform 2010 was tagged a customer driven sector wide plan to. The reform has been able to introduce new set of players such as the independent power producers ipps, nigeria electricity liability management company nelmco. The national electric power policy 2001 and the resulting electric power sector reform act 2005 removed the monopoly of the vertically integrated national electric power authority and unbundled it into six. Act, 2010 roadmap for power sector reform, and subsequently the 20. Roadmap for power sector reform aug 2010 power library. Privatisation in the power sector navigating the transition pwc. In addition, the government has taken steps to expand the existing generation capacities by the. Nigeria the economic and power sector reform program african.
There is no doubt that there is high level of inefficiency in the nigerian power sector. Federal ministry of water resources 2011 2 roadmap for nigeria water sector foreword when the ministry of water resources was recreated by the president, commanderinchief of the armed forces, h. Nigerian power sector reforms and privatisation by bolanle. This document is a vital complement to the electric power sector reform act epsra. It literally provides the life line for everything.
The call for power sector reform in nigeria is primarily as a result of inadequate electricity supply, incessant power outages, low generating plant availability and high technical and nontechnical losses that have characterized the nigerian electricity industry. The sectors market structure like most economies of the developing world is dominated by the stateowned power entity power holding company of nigeria phcn, formerly the national electric. The electricity power sector reform act 2005, was passed setting up the commission with responsibilities to license companies to generate, transmit and distribute electricity in nigeria. The effect of control measures in the power sector reforms on. The implementation of the roadmap for power sector reform of august 2010, the roadmap led to the privatisation of the power sector on. Power sector reform in nigeria global energy architecture. The challenges of the nigerian electric power sector reform.
Jun 30, 2017 the nigerias power sector recovery programme. The roadmap for the development of the solid minerals sector further projects a 30% contribution by coal to the nations power generating capacity. Fintech and the banking sector in nigeria pwc nigeria. Developing the solid minerals sector quick wins for the. The fgns roadmap for power sector reform is focused on delivering new. The power sector is now regulated by the national electricity regulatory commission nerc under the federal ministry of power. This guide provides a general overview of the nigerian power sector and sets out the legal and regulatory. Fashola restates challenges in power sector are manmade. The availability of reliable electric power to the homes and businesses of our tcitizens has been one item in our national life that we have approached with so much hope and yet experienced so much frustration over the past decades. The main aim of the nigerian government was to utilize the financial, human and other resources for the development of the electricity industry effectively and to spread the electricity supply across the country. The project supports one component, partial risk guarantee prg series with three subcomponents based. Preparation of a procurement manual for materials and.
However, in august 2010 the then president, goodluck jonathan, launched the power sector reform roadmap, aimed at shifting the running of power utilities to the private sector. On 2 august 2010, jonathan launched his roadmap for power sector reform. International journal of management technology vol. This paper therefore critically assessed the proposed reform of the electricity market in nigeria. According to the roadmap for the power sector reform, the federal government intends to develop commercial power generation through focus on hydro, coal and natural gas. The result of the analyses is, ultimately, a pointer to whether or not there is need for reform of public sector accounting and budgeting systems in nigeria to make the act more effective. Power sector reforms in nigeria likely effects on power reliab. Introduction during the launch of power africa in 20, president barack obama declared access to electricity is. Implementing reform has resulted in significant progress that. The role of the ptfp is to coordinate the activities of the various agencies chargedwithensuringtheremoval of legal and regulatory obstacles to private sector investment in the. Several areas still need to be electrified in line with the governments vision 2020. The introduction of power sector rebranding and reform policy in nigeria was a direct reaction to the complaint of customers of power holding company phcn who at various quarters and medium, express dissatisfaction with the level of availability and distribution of power in the country.
The development objective of the power sector guarantees project for nigeria is to increase the supply of electricity received by nigerian consumers. Evaluation of the roadmap to power sector reforms in. This is to free the lines from vegetation and other related. Inhaling nigerias premium vape juice best local eliquid. The effect of control measures in the power sector reforms. To remedy these issues, the nigerian government made a move to get the power sector privatized via the electric power sector reform map of 2005 and the launch of the roadmap for power sector reform in 2010.
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. The reform imperative page 33action plan for reform of the nigerian electricity supply industry. The challenges of the nigerian electric power sector. Timeline electricity generation in nigeria started in 1896 although it was not until 1929 that the first utility company, the nigerian electricitysupplycompanywas established. Ministry of power, works and housing is an arm of the federal government of nigeria with a responsibilities of providing social amenities such as power over ethernet across the country. It included the privatisation of the stateowned power holding company of nigeria phcn. Any investor is guaranteed the free importation and convertibility of foreign exchange. Nigeria should be paying tariffs free of direct fgn subsidies. The proposed economic and power sector reform program epserp is the banks response to a formal request of the fngn in may 2009 for a quick disbursing fiscal stimulus adf loan to support its efforts aimed at mitigating the adverse impact of the global financial and economic crisis. The roadmap for the nigerian power sector reform the fg, in response to the peoples demand for real and immediate improvement in supply set up the presidential action committee on power pacp, chaired by the president, and with most decision makers in the economy as members. The nigeria electricity regulatory commission nerc promise of free supply of.