Nigeria calls for power proposals

Minister of Power, Works and Housing Babatunde Fashola has said the government would welcome offers for its 40% stakes in the country’s 11 electricity distribution companies, local media reported Tuesday.

“Certainly, the government wants to see more investments in the sector, you would have heard from the president and from the vice president that our role really is to enable [the] private sector [to] lead our economy,” Fashola was quoted as saying by This Day. “So, I would like to see an offer on the table, and you will see how I will respond to it. There is an assumption that there is an investment we are turning aback and if there is one that I am missing, please show me the direction to it.”

Nigeria has long suffered shortcomings in its power generation sector. In 2016, the country’s available power capacity was around 5 GW. Even at this level, higher than the current capacity of some 3.8 GW, Nigeria was woefully undersupplied, with an estimated 160 GW needed just to meet demand.

Nigeria National Petroleum Corporation (NNPC) unveiled a power plant construction programme in March 2017 that will double Nigeria’s power generation capacity over the next 10 years.

According to NNPC’s chief operating officer tasked with overseeing gas and power, Saidu Mohammed, the company aims to add 4 GW to the country’s power generation capacity. The programme, which is expected to require USD 15 billion in investment, is projected to commence within three years. Incorporated joint venture companies are expected to lead the effort, with partnerships modelled on the Nigeria Liquefied Natural Gas entity structure.