Anyone living in Nigeria can testify that insufficient electricity production/distribution is the biggest infrastructural challenge facing the country. This problem has lingered for many years, adversely affecting the country’s economy. In the meantime, countless attempts have been made to resolve the problem. These attempts have, however, failed to yield any result. Now, PwC Nigeria is joining the effort with a recently published white paper titled, ‘Solving the liquidity crunch in the Nigeria Power Sector’.
The key observations
The report by PwC Nigeria noted that the situation in Nigeria’s power sector is rather abysmal. The country’s operational capacity of less than 4,000MW is far less than the set target prior to the privatisation of the power sector in the early 2000s. The report also noted that only 60% of Nigeria’s population has access to electricity, meaning that the remaining 40% are completely cut off. Interestingly, even the 60% do not get quality service because electricity supply is epileptic.
The main challenges
As one can expect, there are many problems facing the Nigerian power sector. A lot of these problems bother on inadequate production. Also, the means via which generated electricity is transmitted also presents another major challenge. See the problems highlighted below:
- Inadequate gas supply
- Limited transmission lines
- Operational inefficiencies
- Poor water management at hydropower plants
- Inadequate and obsolete distribution infrastructure
“Gas-fired power plants account for more than 77% of total electricity generated (Q4’2018: 71%) while hydro sources accounted for 23% (Q2’2018: 29%). Insufficient gas supply and variability in rainfall and water level at hydro plants, among other challenges, continue impact power generation in Nigeria.”