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Nigeria's Electricity Situation Remains Hopeless
Still lights out for 20 hours a day
On his inauguration in May, Nigeria's President Muhammadu Buhari described the power supply situation in the country as shameful noting that the country spent about twenty billion US dollars on the power sector since 1999 and achieved very little to improve electricity supply to the people.
According to the President, "no single cause can be identified to explain Nigeria's poor economic performance over the years than the power situation."
Buhari could not have stated it better. Nigerians have endured blackouts for much of the country's existence as an independent nation, a situation that has become so much a part of life that people now accept it as the norm.
According to NOIPolls Ltd. power report of August 2015, covering the period April 2013 through June 2015, the average daily cumulative power supply received by consumers in the second quarter of 2015 was 4.5 hours. The implication is that Nigerians rely on alternative power supply (generators, inverters and solar panels) to run their homes and businesses. This, the company noted, has created additional strain on personal finances of households as the alternative sources are usually more expensive to maintain as opposed to direct power supply from public utility grids.
In Washington DC recently, Engr. (Mrs.) Bahijahtu Abubakar, the National Coordinator, Renewable Energy Program, Ministry of Environment, Federal Republic of Nigeria announced in June that Nigeria currently has only 3,600 – 4000MW installed power generation capacity which is far less than the present estimated demand of 14,000 – 20,000MW. This dim assessment was made during her address to the Corporate Council on Africa Power Working Group forum, part of a project on “Partnership Opportunities in Nigeria's Renewable Energy Sector”
As guest speaker, Mrs. Abubakar said the shortfall of 16,000MW power demand is being met by off-grid solutions such as electricity generators and firewood. There was no mention of coal which confirms that coal mines which provided most of Nigeria's energy needs, up to the late twentieth century are now dead.
What is important, however, is the national energy plan to meet this demand in the near future or lack of it.
One of the key options canvassed by Mrs. Abubakar is the development of off-grid systems and utility-scale grid-connected solar power plants. She also cited the newly approved National Renewable Energy and Energy Efficiency Policy and government's push to install stand-alone solar kits in households in Northern Nigeria; grant of license to 4 private investors to develop solar projects and grid connected generation of electricity; tax and other incentives for private sector solar power investors, and encouragement of businesses to install solar panels.
It is regretable that despite the attempted reform of the power sector by the Federal government, the country has not been able to generate more than 4600 megawatts of electricity for over 170 million people.
Indeed, the epileptic supply of electricity power in Nigeria results in unimagined hardship for the people. Even the 4.5 hours per day supply is often so erratic and not continuous that businesses would rather just power their equipment with generators to maintain continuity and avoid damage by surge often associated with the constant on and off of the public supply.
Also, an earlier independent report by Messrs. Emovon, Kareem and Adeyeri, in 2009, pointed out that Nigeria actually has a total grid installed capacity of 8,876MW from 16 power plants out of which only 3,600MW is available. This means that the nation produces just about 40% of the total installed power capacity.
More than six years after the report, the picture remains unchanged despite the enormous resources invested in the sector since then. This raises the question as to whether the power sector is a conduit for corrupt officials on looting spree.
Logically, it goes beyond cavil that the first step the federal government should take to tackle this issue would be to ensure that the power plants are generating at their maximum installed capacity. Then find ways to quickly increase production to match or exceed the estimated 20,000MW current demand. Given that the market is available, and users are ready and willing to pay for the supply, the inability of government to meet the nation's power generation demand becomes a mismanagement issue and an abdication of its responsibility to the nation.
It is a well-established fact that electric power is the engine that drives industrialization. It improves communication, helps innovation in science and technology, provides sound healthcare delivery system and improves citizens' standard of living.
One of the troubling factors identified as mitigating a full grid capacity output is the sabotage of oil, gas and electric equipment and lines. This vandalism has become a lucrative trade for vandals parading as militants, who are increasingly encouraged by government's practice of settling and awarding them millions in security contract to help safeguard the very same oil and gas pipelines that they destroy. Finding a lasting security solution to the vandalism is a task that government must take seriously.
The rest of the identified issues can be compartmentalized into poor government management of resources and corruption which makes greater private partnership participation in electric power generation imperative.
Going to the solar power alternative appears very promising. Solar power has been described as the power source of the future by United States' Tesla's Elon Musk and the rest of the world seem to be heading in that direction. Just recently, Impulse, a 100 percent solar-powered plane attempted to circumnavigate the world. The plane's wings are 72 meters across. They are covered with more than 17,000 solar cells. These special energy storage containers provide power to the batteries that permit the plane's four electric motors to operate at night. Nigeria is endowed with this natural resource which just begs to be tapped.
Also, on August 19, India revealed the world's first 100 percent solar-powered airport, announcing that Cochin International airport will run entirely on solar power. The airport commissioned a 12 megawatts solar power plant, which was installed by Bosch Ltd. Electricity generated from the solar plant is used to power airport facilities during the day. The airport sells surplus energy harvested from its solar farm to the State Electricity Power Board and at night, it would draw power from the grid. Currently, India has 4 gigawatts (which is equal to 4000 megawatts) of solar capacity, with an aim to reach 100 gigawatts by 2022. Indian government has begun directing other airports around the country to start incorporating solar energy into their operations.
Ironically, India's solar capacity of 4 gigawatts is equivalent to Nigeria's total electricity generation of 4000 megawatts. Quite unlike Nigeria, it should be noted that India has efficiently managed its national electricity generation and Information Technology industry and have parleyed such effective management into solar power generation.
For Nigeria, it seems cheaper and quicker for the country to invest more on solar energy generation which could potentially solve the problem of pipeline vandalism that has plagued the industry for decades. Granting incentives for businesses and households to install solar panels which will connect to the grid for the return and sale of surplus energy to electricity companies seems a very viable option. The only drawback as is the case with every project in Nigeria appears to be government's mismanagement and corrupt practices.
On August 14, 2015, the Senate resolved to probe the huge expenditure committed to power supply under Obasanjo and Jonathan administrations since 1999. The lawmakers condemned the inability of Power Holding Company of Nigeria, PHCN, to provide continuous and uninterrupted power supply to all parts of the country noting that Nigeria, with a population of over 150 million people, produces only 4,600 megawatts while South Africa with a population of 40 million produces 40 thousand megawatts with additional 11,000 megawatts coming on stream.
The law makers believe that the two most important items on the list of things that the federal government must resolve immediately are corruption and electricity supply.
The Senate probe committee resolved, among other things, to:
Examine the unbundling of NEPA into various private units facilitated by the Bureau of Public Enterprises;
Seek inputs from the establishment of the process of privatization as it relates to funds committed to the exercise, funds generated and the settlement of laid off staff of the Power Holding Company of Nigeria;
Verify the claims of the successful bidders, their companies' financial profiles and why they were already asking for bail out/loan facilities from the Central Bank of Nigeria;
Seek explanations from the management of Transmission Company of Nigeria on the terms of its management contract with the Federal Government as it relates to assets inherited, funds injected into the company and the achievement recorded;
Ascertain the level of funds committed into the distribution segment before privatization since the segment is currently solely private sector driven;
Find out why some of the distribution companies reject power load allocations to reduce cost;
Undertake a fundamental review of the current metering system of the distribution companies since the emphasis had been on estimated billings and imposition of fixed charges for services not rendered; and
Find out why some of the power plants built have not been able to contribute meaningfully to the power generation through the National Grid.
What the probe ultimately accomplishes remain to be seen.