Electric power policy of 2001 kicked off the power sector reform in nigeria, leading to several other reforms. Several areas still need to be electrified in line with the governments vision 2020. Pdf constant power supply is the hallmark of a developed economy. With the epsr act, nigerian power sector reform achieved institutionalisation. The application of structural, regulatory and market reforms to electricity sectors brought along with it significant performance improvements.
Britain to support power sector reform in nigeria vanguard news. Donor coordination is expanding in nigeria, and the power sector is rightly a main. It presents the way forward for epileptic power supply by embracing embedded generation as a potential option to improving power supply in nigeria. Publications archives bureau of public enterprises bpe. The effects of power sector reform on energy services for the poor. Thus, the electric power sector reform act is an invaluable tool in ameliorating the adverse effects observed.
At present, less than half of nigerias population has access to gridconnected electricity. Transfer of pension fund assets of the nigeria social insurance trust fund. This paper serves as a flashback into the history of nigeria s power sector. The journey to unbundling of the nigerian power sector has been long and the nigerian electricity power authority nepa lost its monopoly over the operation of the nigerian power sector. 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 implications of legal reform in the nigeria power sector. Lagos state transport sector reform law 2018 lexology. Preparation and implementation support for a power sector rec. Power sector reformseffects on electric power supply. Electric power sector reform act, 2004 2004 laws of nigeria. As at 2005, nigeria proven crude oil reserve stands at 35. Electric power sector reform act 2005 rural electrification. The nigerian power sector is primarily responsible for generating electricity for the countrys industrial activities.
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. 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. Power sector reforms in nigeria likely effects on power reliab. Hence, the national electric power policy of 2001 kicked off the power sector reform in nigeria, leading to several other reforms over the last decade. Domestic gas supply and pricing policy and roadmap for power sector reform of 2010 ajumogobia and okeke, 2015. The nepp was encoded in legislation through the electric power sector reform act 2005. November 10, 2018 publications stakeholders forum privatisation and the nigerian economy. Nigeria, political economy, power sector reforms, energy, electricity, megawatts. The rationale for power sector reforms was to improve the technical, commercial and financial. The challenges of the nigerian electric power sector reform. How to use noninterest finance to solve housing sector problem in nigeria.
Federal republic of nigeria federal ministry of power. Power sector reform roadmap full version nigerias no1. 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. Electric power sector reform act, 2005 nigeria electricity. 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.
Implementing reform has resulted in significant progress that includes unbundling and privatization of the longstanding governmentowned monopoly in the power sector. 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. Nigeria or any other person in respect of any debt or obligation of the authority, and which was effective immediately before the initial transfer of the principal debt or obligation, shall remain fully. Energy demand and generated between 19832003 years energy generated in gwh peak max. Fgons roadmap for power sector reform in which the fgon commits to fulfilling the imperative of the electric power. 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. 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.
Oct 14, 2016 roadmap for power sector reform, 2010. The ministry in discharging this mandate is guided by the provisions of the national electric power policy nepp of 2001, the electric power sector reform epsr act of 2005, and the roadmap for. Electric power sector reform act an act to provide for the formation of companies to take over the functions, assets, liabilities and staff oftionalthe na electric power authority, to develop competitive electricity markets, to establish. The majority of reserves are found along the countrys costal niger delta. Sep 17, 2017 download version download 2215 file size 1. In this fgns reform program, the power sector is the distinct area of the banks concentration. In the 1950s and 1960s the nigerian government created the electricity corporation of nigeria to control all existing dieselcoal fired isolated power plants acr.
Nigerian power sector reforms and privatisation by bolanle. Nigeria, a country of over 120 million people, has for the past 33 years of establishment of the national electric power. The bank has a continentwide experience and engagement in the power sector in africa. 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. The federal ministry of power is the policy making arm of the federal government with the responsibility for the provision of power in the country. Investment brief for the electricity sector in nigeria usaid. The nigeria electric power sector opportunities and. Jun 30, 2017 the nigerias power sector recovery programme. The effect of control measures in the power sector reforms on.
In this publication we look at some of the milestones that have been crossed and explore the next steps in the sale of 17 federal government power assets. The primary and secondary data were subjected to statistical analyses using tables and graphs. Nigerias electricity sector lost more than n540 billion to series of constraints that beset its operations in 2017, which made it difficult for the operators to supply the needed power to. Arkwright stated this on tuesday in abuja in an interview with.
Objectives of the study the main objective of this study is to examine the effectiveness of control measures in the power sector reforms on electricity development in nigeria. Timeline electricity generation in nigeria started in 1896 although it was not until 1929 that the first utility company, the nigerian electricitysupplycompanywas established. The standard text in policy reform is that until the reform is codifiedin an act of parliament, the gains of the reform remain reversible. The fgns roadmap for power sector reform is focused on delivering new electricity generation infrastructure to eliminate the current supply deficit while also. Nigeria investmentbrief page2 gaspipelinevandalization gasprocessingcapacity transmissionwheelingcapacity. This study seeks to examine the power sector reforms, effects on electric power supply reliability and stability in nigeria. The challenges of the nigerian electric power sector. Power sector reforms in nigeria started under the national electric power authority nepa. Txt the text version is uncorrected ocr text and is included solely to benefit users with slow connectivity. Deregulation of the nigerian power sector on performance. Power sector reform in nigeria global energy architecture. Nigeria power sector recovery program english the world. Any nation whose energy need is epileptic in supply prolongs her development and.
Reforms in the nigerian power sector are among the most renowned efforts at privatisation on a national scale throughout africa. The nigeria experience 199 oil is the third main source of energy, and it is nigerias major sources of revenue. The effect of control measures in the power sector reforms. By the late 1990s it became clear that the publicly owned and operated electricity system was failing to meet nigerias power needs. It is selfevident that the poor performance of the electricity power sector in nigeria has been a significant barrier to. Roadmap for power sector reform, 2010 nigeria electricity hub. The challenges of the nigerian electric power sector reform 1. Since the advent of the democratic regime in nigeria, there have been significant strides in the reform of the sector. Evaluation of the impact of power sector reforms on the. The federal government in 2000 adopted a holistic approach of restructuring the.
Donor coordination is expanding in nigeria, and the power sector is rightly a main focal area of concentration in this development. The 2015 elections marked, for the first time in nigerias. Nepa as a result of unbundling and the power reform process was renamed power holding company of nigeria. Current electricity generation is primarily from either gasfired or hydro power plants, with natural gas the main fuel source for power generation in nigeria. Transfer of pension fund assets of the police and paramilitary. 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. Powering nigeria for the future the power sector in nigeria july 2016. The political economy of nigerias power sector reforms mcser. May 16, 2017 british high commissioner to nigeria, mr paul arkwright, said the british government would support power sector reform in nigeria. Privatisation in the power sector navigating the transition. The national electric power policy of 2001 set the goforward framework for power reform in nigeria, leading to the national electric power policy and thus the nipp. Electricity generation and the present challenges in the. Electric power sector reform act 2004 laws of nigeria. Sisaa agboh with the recent inauguration of the over n50billion sunti golden sugar estates in niger state by president muhammadu buhari, the face of the nigerian economy is undoubtedly changing.
Power africa united states agency for international. Webtv, theanalyst, proshare, personal finance, the nigerian capital market reports, money africa, the nigerian investor, making money in the nigerian capital market, investor relations service, proshare investment clubs, evaluating your financial health, becoming your own stock analyst. 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. Global patterns of power sector reform, 198220 sciencedirect. The call for power sector reform in nigeria is primarily as a result of. Kenya, liberia, nigeria and tanzania the power africa focus countries, the government of the united states of america, the u.
British high commissioner to nigeria, mr paul arkwright, said the british government would support power sector reform in nigeria. This document is a vital complement to the electric power sector reform act epsra. A guide to the nigerian power sector a guide to the nigerian power sector it is also designed to provide information on the regulatory agencies and key institutions in the sector, broad practical guidance on the relevant legislation, fiscal provisions and applicable tax incentives, and some current industry issues prevailing as at date of. Nigeria the economic and power sector reform program african. Investment brief nigeria may 2015 united states agency. An overview of the lagos state electric power sector reform law, 2018 related international articles innovations and ip protection in transport. Nigerias power sector is unbundled and largely privately owned. Pension reform act 2014 national pension commission. Power of the commission to order a special examination. With an installed generating capacity of about 7,500mw and operating capacity of. Original data on power sector reforms in developing countries, 198220.