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To surpass Nigeria’s per capital power consumption rate of 151kWh per year, one of the lowest globally, and reach 982kWh per year by 2025, the country needs a three-pronged approach: scale up generation, transmission and distribution capacity; drive efficiencies in utilisation and reduce transmission and distribution losses according to a recent PricewaterHouseCoopers study.
Government, regulator and industry participants will all play core roles according to PwC with the government and regulator taking the lead to create the right investment climate and set favourable policies in place, whilst industry participants focus on implementing new technology, faster project execution and improving operational efficiencies.
PricewaterHouseCoopers, a professional service firm published the 36 page report titled ‘Powering Nigeria for the Future,” which highlights approaches that the company thinks if implemented will improve power generation, transmission and distribution in Nigeria based on the success in other countries.
“Overall, Nigeria has the potential to once again emerge as a shining star, not only within Africa, but in the global economy as well. Enhancing the availability of power over the next decade, based on robust generation, transmission and distribution capabilities, will help create a strong foundation towards unlocking this potential and powering Nigeria for the future,” states David Wijeratne, Growth Markets Centre Leader and Pedro Omontuemhen Partner, PwC Nigeria and Power and Utilities Leader, West Market Area, Africa in their introductory notes.
The report also identified what it called levers that will help to make the realisation of the goal possible. This includes implementing efficient power generation technologies, faster execution of power projects, maintenance and overhauling of failing infrastructure and attracting investments through public private partnership.
It also advocates for strategies to reduce losses by improving distribution infrastructure, urging distribution companies to consider automation at various stages to reduce the incidence of revenue leakage. Other approaches include scaling up distribution infrastructure in alignment with transmission expansion.
“Executing these levers will also require significant involvement and alignment between the Federal Government of Nigeria, the Ministry of Power and the industry participants. In addition, the implementation needs to be well planned and sequenced appropriately to derive the desired benefits,” the report said.
Whilst there is no single short-term solution to Nigeria’s power challenges, there are a number of opportunities for companies to bring their global skills and expertise to the table and participate in the journey of powering Nigeria’s long-term growth, the report said. Experts have long called for revamping the existing transmission infrastructure which remains the weakest link in the power value chain. Nigeria’s transmission lines cannot carry above 5000mw regardless of the amount of power generated.
ISAAC ANYAOGU
