A Review of the Nigerian Energy Industry

Govt canvases for efficient electricity market

22 September 2015, Abuja — The Federal Government has charged participants in the electricity market to imbibe best business practices in order to bequeath a well-established electricity market to the next generation.

Power4The Permanent Secretary, Ministry of Power, Amb. Godknows Igali, gave the charge while speaking at the close of a 2-day interactive workshop on: ‘Interpreting and Understanding the Market Rules’ for the electricity market stakeholders in Abuja.

Igali, while highlighting the history and experiences leading to the power sector privatisation, called on the market participants to be open, willing to learn and become better operators as the sector was still going through a learning curve.

A statement from the System/Market Operation, Transmission Company of Nigeria, TCN, said Igali as expressed confidence and optimism that the current challenges would be surmounted over time, and the objectives of privatisation achieved to position Nigeria on the path to sustained industrial development.

He told market participants that the Ministry is discussing with relevant Federal agencies such as Central Bank of Nigeria, CBN, and Pension Commission with a view providing a pool of funds that can be accessed at single-digit interest rate to ramp up operations and service delivery.
He added that bilateral discussions were ongoing with several international agencies on how to build thermal (gas) power plants, micro-grids and other renewable energy plants in order to provide more power for the grid and for Nigerians.

Earlier, the Managing Director/Chief Executive Officer, System Operation/Market Operation, Mrs. Ngozi Osuhor, explained that the workshop was organised to enhance the understanding of the market rules and grid codes among market players so that they can be more efficient and effective in delivering superior services.

Sustainable basis

She said that the System/Market Operation was through the workshop, performing one of its core responsibilities of providing education and capacity building for participants in order to grow the market on a sustainable basis.

She assured that similar workshops will be held on regular basis as a platform to continue the interaction and exchange of industry and operational knowledge among market participants to bring them up-to speed with developments in the ever-changing world of electricity market.
She stated that decisions on the way forward reached at the end of the workshop deliberations would be sent to the regulators for necessary action.

The workshop which was organised by Infranet Energy Services, had many industry experts including Mr. Uzoma Achinanya, Mr. Musa Gummel, Mr. Chidi Ike, Mr. Abdulkadir Shettima, and Mr. Robert Grant, and a host of others delivering papers on various aspects of the Grid Codes and the Market Rule.

Electricity costing more than 5cents (N11.00)/Kwh is seen as unaffordable in Nigeria given our per capita income. We have also alerted the authorities that only hydropower or coal-based power generation can be produced at less than 5cents/Kwh. There and then can we say that our source of electric power is definitely not gas!

Source of power

I know our company (Africa Mutual Funds) spent more than $500,000 on the feasibility, technical audit and technical repair plan to bring adequate power to Nigeria. The $500,000 spent on our own of which $50,000 was paid to secure concession of the existing three hydropower plants in Nigeria!

We know that our plan, copies of which are at the Federal Ministry of Power is as feasible today as when we conducted those studies and technical audits in 2010-2011. I hope our President has the political will to pursue this acceptable proposal (see note below) for which the authors are very much around, and are ready to work for Nigeria to benefit from economic development. This will bring billions of US$(dollars) into the Nigerian economy, reduce cost of production, open up the country for investments and reduce graduate unemployment.

I am writing this and very sure of what I am saying because our President once said that “these generations of Nigerians have no other country to call their own.” I agree with General Buhari then, and I agree with him now, and I know that these generations of Nigerians are ready to roll up their sleeves and go to work to make Nigeria great!

NB: The proposals to revamp hydropower facilities in Kainji, Jebba and Shiroro and upgrade them to produce about 17,100MW by 2014, was adjudged bankable by many experts both in Nigeria’s Ministry of Power and by three other power generating companies in the United States and Canada. The Nigerian Union of Electricity Employees and the Senior Staff Association of Electricity Workers saw the proposals as sure remedy to the electric power malaise in Nigeria.

I am writing this and very sure of what I am saying because our President once said that “these generations of Nigerians have no other country to call their own.” I agree with General Buhari then, and I agree with him now, and I know that these generations of Nigerians are ready to roll up their sleeves and go to work to make Nigeria great!

NB: The proposals to revamp hydropower facilities in Kainji, Jebba and Shiroro and upgrade them to produce about 17,100MW by 2014, was adjudged bankable by many experts both in Nigeria’s Ministry of Power and by three other power generating companies in the United States and Canada. The Nigerian Union of Electricity Employees and the Senior Staff Association of Electricity Workers saw the proposals as sure remedy to the electric power malaise in Nigeria.

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