A Review of the Nigerian Energy Industry

64% of Nigerians experienced improvement in power supply in last quarter – Survey

*Improved power supply.
*Improved power supply.

Oscarline Onwuemenyi

10 October 2015, Sweetcrude, Abuja – Power poll results released by NOIPolls Limited for the third quarter of 2015 have revealed that about 64 percent of Nigerian households experienced tremendous improvement in power supply over the third quarter (Q3) of 2015 (July –September 2015).

This value represents a huge increase by 37-points in this category of Nigerian households from Q2 2015 where only 27 percent of households saw improvement.

The surge in power supply is likely connected to the recent general improvement in power generation, even as a historic increase in peak capacity generation to 4800 Megawatts was recorded within this period.

Further analysis of the results revealed that the power sector over this period recorded steady improvement in power supply, with an all-time high experienced in September 2015 (69 percent).

Analysis of quarterly trends by geo-political zones over a 33-month period revealed that in Q3 2015 a larger proportion of Nigerian households across geo-political zones experienced significant improvement in power supply when compared to Q2 2015.

The highest improvement was recorded in the North-Central region (70 percent) and lowest was recorded by the South-South region (47 percent).

According to the report, “While power supply has significantly improved nationwide, it is imperative that the recent increase in peak capacity generation be sustained and improved upon with consideration given to annual population growth rate and energy demand projections.

“Also, energy conservation technologies should be explored so as to augment energy deficits when there is a drop in power generation.”

It added that the challenges preventing the Nigerian power sector from meeting the energy demand of its population are enormous, ranging from poor maintenance of generating plants, receding water levels at hydroelectric power stations, and poor supply of gas to turbines, among others.

“Massive investments have been made in the power sector over the years without a corresponding improvement,” the report added.

The report showed that in September 2015, peak capacity generation was about 4800 megawatts scaling up past the average 3,000 megawatts that have been consistently generated since the power sector privatization in Q3 2013.

While this clearly represents a tremendous improvement in power generation, it must be noted that the projected energy demands for 2015 is recorded 31,210MW.

In conducting the power polls, respondents were asked five specific questions each month; one of these questions would be discussed in this release.

The result presented is a 33-Month tracking of power supply to households from the consumer end.
Respondents were asked monthly to describe the state of power supply to their households. This question specifically assesses the state of the Nigerian power sector from a consumer stand point.

Findings revealed a tremendous improvement in power supply in Q3 2015 (July-September 2015) as confirmed by an average of 64 percent of Nigerian households.

The month of September recorded the highest improvement (69 percent) seen in Q3 and over the 33-Month period. This percentage represents more than two-thirds of adult population who have seen improvement and an increase by 25-points from the end of Q2 2015 (44 percent).

This improvement in power supply especially in September 2015 may have been a direct effect of recent stringent regulations in the Nigerian power sector inspired by the new government, thus resulting in a historic peak capacity generation of 4800MW within this period.

A closer analysis on the state of power supply within the period in view shows that there has been a steady improvement in power supply from June 2015, while hitting an all-time high in September 2015 (69 percent) from the commencement of the NOIPolls power tracking in Q1 2013. This shows a difference of 19-points from its previous all-time high of 52 percent recorded at the end Q3 of 2014.

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