[SPECIAL REPORT]
W
ith a population of over 183 million people and a population growth rate of
2.7 percent per annum, the demand for power in Nigeria can only be expected
to rise. An estimated 55 percent of Nigeria’s population has no access to grid-
connected electricity.
Presently, Nigeria has an installed electricity generation capacity of 12,522 megawatts,
of which 10,592 megawatts is gas-fi red and 1,930 megawatts is from hydro generated.
However, the maximum peak generation has been about 5,074 megawatts so far.
Nigerians self-generate a signifi cant portion of their electricity, at a cost that is twice
more than the cost of grid-based power. The Nigerian power sector remains in need of
signifi cant investment as its utility-scale electricity generation capacity continues to fall
short of meeting domestic demands.
In an eff ort to tackle this problem, in 2005, the Nigerian government privatised
generation and distribution phases of the power value chain, retaining just a minority
stake. In view of these developments, Nigeria’s current administration has exhibited a
strong will to reform the power sector, with the Minister for Power, Works and Housing
indicating that the government is looking to partner with private parties to facilitate
investment in the power sector.
Nigeria-India• 2018 • 29