31. Electrification in Nigeria: Challenges and Way Forward
- Author:
- Chukwuka Onyekwena, Joseph Ishaku, and Precious Chukwuemelie Akanonu
- Publication Date:
- 10-2017
- Content Type:
- Working Paper
- Institution:
- Centre for the Study of the Economies of Africa (CSEA)
- Abstract:
- Although electricity has been generated in commercial quantities in Nigeria for over a century, the rate of electricity infrastructure development in the county is low and power supply remains inadequate. Prior to reforms, the central challenges of the Nigerian power sector was the vertically integrated monopoly of government in power generation, transmission and distribution. While the reforms was successful in privatizing the generation and distribution segments of the Nigerian Electricity Supply Industry (NESI), the overbearing problems in the sector persists –with privatization only changing the dimensions of the challenges. Financing remain a major problem across all the segments of the NESI partly due to non-cost reflective tariff. Yet each segment of the NESI also faces its unique challenges. The generation segment is riffed with the problems of energy security and inefficiencies in other segments. The challenges in the transmission segment lies in the lack of modern transmission lines and equipment, gross mismanagement, poor maintenance of available infrastructure and inefficient grid design. Distribution companies face the problem of huge Aggregate Technical, Commercial, and Collection (ATC&C) losses.
- Topic:
- Economics, Privatization, Infrastructure, Finance, Electricity, Economic Development, Financial Institutions, and Financial Services
- Political Geography:
- Africa and Nigeria