Page 6 - AfrElec Week 11 2022
P. 6
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
