Page 6 - AfrElec Week 11 2022
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AfrElec                                        INVESTMENT                                             AfrElec




       Nigeria needs $100bn to meet





       power needs – think tank












        NIGERIA          NIGERIA will need $100bn over the next 20   Nigeria, which has the lowest electricity con-
                         years to solve its electricity supply problems and  sumption per capita in Africa, supplies power to
                         meet rising demand, a new report by Nigerian  the Republic of Benin, Congo and Niger under
                         think tank Financial Derivatives Company  the West African Power Pool (WAPP) agree-
                         (FDC) said.                          ment for ECOWAS countries.
                           The report notes that only major reforms will   According to the report, the country’s
                         attract investors to the country’s power sector  power generation is mostly thermal (80%) and
                         and enable necessary investment in generation,  hydro (20%) with an installed capacity of about
                         transmission and distribution infrastructure as  12,522MW, while at least 40,000MW is needed
                         well as much-needed joint ventures, personnel  to meet the country’s electricity demand.
                         training and legal and policy improvements.  “However, monthly, the national grid strug-
                           The FDC further stresses a need for the gov-  gles to provide a little over 4,200MW, which
                         ernment to address the numerous issues pervad-  is 66.46% below installed capacity and 89.5%
                         ing the sector and affecting output.  below potential capacity. More so, the gov-
                           “The country will require significant invest-  ernment privatized 11 electricity distribution
                         ments to achieve reliable power supply in the  companies and six generating companies while
                         short to medium term. The estimated amount  retaining 100% ownership of the Transmission
                         needed is about $100bn over the next 20 years,”  Company of Nigeria (TCN)”, the report finds.
                         the report says. “The government also needs   The FDC report lists some challenges facing
                         to hasten its steps to close the metering gaps as  the electricity sector, including: policy uncer-
                         about 50% of the total population is still on esti-  tainty, lack of transparency, poor monitoring
                         mated billing.”                      and implementation, as well as inefficient indus-
                           The report notes that of the estimated $100bn  try practices.
                         in investment required, renewable energy   Meanwhile, the report notes that beyond
                         sources are likely to form the bulk of Nigeria’s  addressing infrastructural issues, there is a need
                         future energy solutions as global warming and  for strong institutions to checkmate government
                         climate change restrict investment in traditional  policies, reduce uncertainty and increase busi-
                         energy sources.                      ness confidence.™

































       P6                                       www. NEWSBASE .com                         Week 11   17•March•2022
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