UKTI TRADE DELEGATION TO LONDON –
SESSION WITH BRITISH EXPERTISE AND
THE CITY UK
11 th FEBRUARY, 2013
Power Sector Opportunities in Nigeria
Dolapo Kukoyi,
Partner (Power)
0
Outline
1. Brief History of the Nigerian Power
Sector
2. Nigerian Power Sector Outlook
3. Power Sector Opportunities
4. Legal, Regulatory and Contractual
Framework
1
Brief History of the Nigerian Power
Sector
2
Brief History of the Power Sector
 A monopoly run by a single government owned utility company
handling generation, transmission and distribution of Electricity.
 Single Utility Company progressively incapable of handling power
demands with rising population.
 By 1999, NEPA at the time had an imminent complete system
failure
 Power Sector Reforms in 2005; creation of PHCN, unbundling of
Generation, Distribution and Transmission businesses and creation
of successor companies and regulatory framework
 Privatization Process suspended in 2007 restarted in August 2010
3
Nigerian Power Sector Outlook
4
SOKOTO
ZAMFARA
JIGAWA
YOBE
KASTINA
BORNO
KEBBI
Gombe
Niger
BAUCHI
KADUNA
Plateau
KWARA
ADAMAWA
ABUJA
NASARAWA
Kogi
OYO
TARABA
EKITI
OSUN
Ogun
BENUE
Ondo
Edo
FGN Gencos
Enugu
Lagos
Cross River
Delta
Abia
Imo
Bayelsa
Rivers
AkwaIbom
Power Generation
Legend
FGN NON OPERATING
GENCOS
Operating IPPs
,bDKDKO
Non Operating IPPs
Operating NIPPs
Non Operating
NIPPs
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EMBEDDED GENERATION
FUEL SOURCES
SOKOTO
JIGAWA
ZAMFARA
YOBE
KASTINA
BORNO
KEBBI
GOMBE
BAUCHI
KADUNA
NIGER
Plateau
KWARA
ADAMAWA
ABUJA
NASARAWA
OYO
TARABA
KOGI
EKITI
OSUN
OGUN
BENUE
ONDO
EDO
Coal Deposits
ENUGU
LAGOS
Hydro Projects
ANAMBRA
DELTA
IMO
Alternative Fuel Sources
Legend
ABIA
CROSS RIVER
,bD
Colours:
K00
Coal
Water
BAYELSA
RIVERS
AKWA
IBOM
Gas
Nigerian Power Sector Outlook – National
 Power Sector Road Map aspiration – 40,000 MW by 2020
 Presidential Taskforce on Power – 30,669 MW by 2020
 Daily Peak Delivery as at December 2012 – 4300 MW ( ± ),
 32 Licensed On -Grid IPPs with a total installed capacity of ±1879 MW total
licensed capacity 12,324 MW
 21 Licensed Off – Grid IPPs with a total installed capacity of ±111.15 MW;
total licensed capacity 284.5 MW
 3 EG Licenses with a total licensed capacity of 263 MW – All Non-Operational
 4 NIPP Projects currently operative with a total installed capacity of 5,625MW,
 Generating Capacity of 4 NIPPs 1,687.5 MW – Dec 2012;
 7 FGN Successor Generation Companies (Hydro and Thermal Stations) with a total
installed capacity of 5,980 MW
 3 big Hydro projects (Gurara, Zungeru and Mambilla) at different stages of
development proposed capacity of 3,300 MW
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Nigerian Power Sector Outlook – Hurdles
 Access to gas, gas prices and gas supply framework
 Transmission Network – Losses and dilapidated Infrastructure
 Bulk Trader – Credibility , Standard PPA Template
 Cost Reflective Tariff
 Maintenance/ Turnaround of existing FGN Discos
 Funding for NIPP Projects
 Liquidity and Regulatory Risks -World Bank Partial Risk Guarantee
 Financing for IPPs
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Power Sector Opportunities
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Power Sector Opportunities
 Investing in Power Privatization (Commercial, Technical and Financial)
 Power Transmission Infrastructure
 Gas Transportation Infrastructure
 Technology and Engineering
 Independent Power Projects (on grid and off grid)
 Embedded Generation
 Independent Electricity Distribution Networks
 Technical capacity and Knowledge – capacity, standards, contracts.
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Power Sector Opportunities – Lagos State
 Population as at 2012 – 20.5 million
 2,000 industrial complexes, 10,000 commercial ventures and 22
industrial estates.
 Requires over 12,000 MW of electricity
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Power Sector Opportunities - Lagos State
No
Area
No. of
Location
s
271
No. of Sectors
Number of
Generators
15
Installed
Capacity
(MW)
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1
Somolu Printing Community
300
2
Matori Industrial Estate
148
20
40
105
3
Ilupeju Industrial Estate
144
18
25
105
4
Ikorodu Industrial Estate
11
4
135
31
5
Lagos Island (broad street &
Marina only)
599
25
100
252
6
7
8
9
10
11
Ikeja GRA
Oba Akran
Agindingbi
Omole 1
Omole 11
Dolphin Estate
789
516
645
936
1531
1544
31
32
36
10
12
12
68
69
70
13
43
22
804
548
820
89
2410
1089
Source: Presentation on Power Sector Development: Lagos State Economic Summit April 23-25
2012
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Legal, Contractual & Regulatory
Structure
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POLICY &
REGULATIONS
Level 1
Ministry Of
Power
Energy
Commission of
Nigeria
Nigeria
Electricity Reg
Commission
National
Inland
Waterways
Min of Water
Resources
GOVERNMENT ENABLERS
Level 2
Gas
Aggregation
Co of Nigeria
NGC
GTC
Nigerian Bulk
Electricity
Trading Plc
IOCS
Niger Delta
Power Holding
Co
Nigerian
Elect Liability
Mgt Co
Transmission
Co of Nigeria
M.O
S.O
TSP
INDUSTRY PARTICIPANTS
Level 3
Independent
Power
Producers
Off Grid
On Grid
Successor
Generation
Companies
Embedded
National
Integrated
Power Projects
FGN
Plants
Successor
Distribution
Companies
Independent
Elect Dist.
Networks
Notable Milestones
 Enabling Legislation for Power Sector Reforms
 Independent Regulator – NERC
 Licensing Framework
 Tariff Framework – MYTO I & II
 Robust Regulatory Framework – Regulations and Codes
 Bulk Trader set up and funding in progress
 Contractual Framework in progress
 Gas Contractual Framework in progress
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Conclusion
The Nigerian Power Sector is bursting with
opportunity
Challenges exist but can be overcome
 Consistent Government political will is evident
in the current privatisation process
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BREAKING NEWS!!!!!
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Thank You for Listening
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