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Historical Overview
Electricity generation in Nigeria began in 1896. The Nigeria
Electricity Supply Company
(NESCO) commenced operation a an electric utility company in
Nigeria in 19!9 "iththe contruction o# a hydroelectric po"er tation
at $urra near %o.
The Electricity Corporation o# Nigeria (ECN) "a etablihed in
19&1' "hile the #irt
1!$ line "a contructed in 196!' lin*ing +,ora -o"er Station to
+badan -o"er
Station.
The Niger am /uthority (N/) "a etablihed in 196! "ith a mandate
to de0elop thehydropo"er potential o# the country. o"e0er' ECN and
N/ "ere merged in 192! to
#orm the National Electric -o"er /uthority (NE-/). +n 1998' NE-/
ceaed to ha0e an
e3clui0e monopoly o0er electricity generation' tranmiion'
ditribution and ale.
Present Status of the Electricity Supply Infrastructure
The National electricity grid preently conit o# nine generating
tation ( hydro and 6
thermal ) "ith a total intalled generating capacity o# &946
5. The detail o# the po"er
generation tation are in appendi3 1.
Supply and Demand
The demand #or electricity i etimated to be about 7&445.
o"e0er' the preentgeneration le0el i about 1&445. There i about
!744 5 o# el# generation in the
#orm o# mall dieel and petrol generating et. The etimated
percentage o# Nigerian
ha0ing acce to electricity #rom NE-/ i only 6. The etimated
demand #or po"er in
!44& i about 92845. Thi "ill reuire a generating capacity o#
about 1!2445.
Thu it i neceary to #ully rehabilitate the e3iting po"er tation
("hich "ill pro0ide a
ma3imum o# &7445 generating capacity) rehabilitate ome
critical tranmiion and
ditribution line and their aociated ubtation and add ne"
generating' tranmiionand ditribution capacity to the grid' in the
immediate and #oreeeable #uture.
Need for Reform
The po"er ector i 0ery capital inteni0e and go0ernment can not
#und it de0elopment
a outlined abo0e .+n line "ith their ob,ecti0e the #ollo"ing
bodie "ill be et up.
Nigeria Electricity Regulation Commission
Thi "ill be an independent regulation agency #or electricity in
the #orm o# a
regulatory commiion. +t hall ha0e many #unction inter alia:
Electricity regulator #or grid connected er0ice.
+t "ill iue licene to the companie operating in the Nigeria
Electricity Supply
+ndutry.
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There "ill be a need to negotiate hort=term increae in
generation capacity under
Emergency -o"er -ro,ect (E--) agreement.Buideline #or
+ndependent -o"er -ro,ect
(+--):
1. NE-/ hall only conclude contract' be#ore the etablihment o#
corporatied
tranmiion and ditribution companie' i# e3plicit reaignment claue
to the#uture inheritor o# the contract (prior to ma,ority
pri0ati;ation o# ditribution
companie ) and to #uture ditribution companie ( a#ter their
ma,oritypri0ati;ation) are pro0ided
