Utilities of Nigeria

utilities

Power

Nigerian oil has a low-sulphur content and reserves of oil were estimated in January 2012 to be 37 billion barrels. Production over 2011 was at the rate of about 2.5 million barrels a day. Reserves of gas were estimated in January 2014 to be 5.1 trillion cubic metres. Exports of liquefied natural gas began in 1999 and grew rapidly. The West African Gas Pipeline began in 2008 to pump natural gas from Lagos along to coast to Benin, Togo and Ghana.

The Energy Act 1997 backs private sector participation within the energy sector and there are various regulatory agencies in place within different states. The private sector participates through service contracts only. Reform of the power sector centres around the privatisation of the Power Holding Company of Nigeria, although other assets such as the Niger Delta Power Holding Co are also being processed.

The Power Holding Company of Nigeria (PHCN) was sold to a private buyer for US$2.5 billion in the second half of 2013. The move is hoped to make the supply of electric power in the country more reliable as, previously, PHCN could often only supply a few hours of power per day. PHCN is composed of 11 power distribution firms and six power generation companies – 15 of these 17 organisations are in line to be privatised. A conglomerate of ex-military leaders and investors now owns PHCN, while Manila Electric and Siemens are set to be among its technical partners.

The federal government-owned electricity system now comprises:

  • Three hydro and seven thermal generating stations with a total installed capacity of approximately 6,852 MW and available capacity of 3,542 MW (July 2010). Each entity has been incorporated as a single-asset generating company
  • A radial transmission grid (330 kV and 132 kV) owned and managed by the Transmission Company of Nigeria, responsible for undertaking the system operation and market settlement functions
  • Eleven distribution companies (33 kV and below) that undertake the wires, sales, billing, collection and customer care functions within their area of geographical monopoly

The Nigerian Government has also expressed an interest in selling off ten gas-fired power plants, currently paid for by the government.

Water

The government is responsible for supplying water at the federal, state and local levels. There is some foreign investment in the sector but it falls short of delivering a significant increase in access. Between 2010 and 2011, water sanitation and hygiene facilities were commissioned by the US Agency for International Development (USAID) in partnership with the Women Farmers Advancement Network (WOFAN) to address the lack of services in Bauchi state. The project included the construction and rehabilitation of 49 boreholes and water systems, 100 ventilated improved pit latrines and 13 handwashing stations, as well as training sessions on hygiene and sanitation in communities, schools and health centres across Bauchi, Alkaleri and Ningi. Water, Environment and Sanitation Committees (WASHCOMs) were established throughout communities to encourage partnerships among institutions in the water sector.

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