Electricity sector in Nigeria
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The electricity sector in Nigeria generates, transmits and distributes megawatts (MW) of electric power that is significantly less than what is needed to meet basic household and industrial needs. Nigeria has twenty-three (23) power-generating plants connected to the national grid with the capacity to generate 11,165.4 MW of electricity.[1][2] These plants are managed by generation companies (GenCos), independent power providers, and Niger Delta Holding Company. In 2012, the industry labored to distribute 5,000 MW, very much less than the 40,000 MW needed to sustain the basic needs of the population.[3] This deficit is also exacerbated by unannounced load shedding,[4][5] partial and total system collapse and power failure.[3] To meet demand, many households and businesses resort to purchasing generating sets to power their properties;[3] this source of energy provided 6,000 MW in 2008.[3] Nigeria has a chronic electricity shortage that has affected the country for many years.[6][7] In 2022, its power grid collapsed twice in one week.[8][9]
Development of electric power industry
Electricity generation in Nigeria began in Lagos in 1886 with the use of generators to provide 60 kW.[10] In 1923, tin miners installed a 2 MW plant on the Kwali River; six years later, the Nigerian Electricity Supply Company, a private firm, was established near Jos to manage a hydroelectric plant at Kura to power the mining industry. Then, another private enterprise was established in Sapele by United Africa Company to power the activities of the African Timber and Plywood Company.[11] Between 1886 and 1945, electric power generation was relatively low, with power provided primarily to Lagos and other commercial centers such as mining industries in Jos and Enugu.[11] The colonial government created an electricity department within the Public Works Department, which then installed generating sets in many cities to serve government reservation areas and commercial centers.[3] In 1950, the Legislative Council of Nigeria began moves to integrate the electricity industry when it enacted a law to establish the Electricity Corporation of Nigeria (ECN) with the duties of developing and supplying electricity.[10] ECN took over the electricity sector activities within PWD and the generating sets of Native Authorities. In 1951, the firm managed 46 MW of electricity.[11] Between 1952 and 1960, the firm established coal-powered turbines at Oji and Ijora, Lagos. It began making preliminary plans for a transmission network to link the power-generating sites with other commercial centers.[11] In 1961, ECN completed a 132 kV transmission line linking Lagos to Ibadan via Shagamu; in 1965, this line was extended to Oshogbo, Benin, and Ughelli to form the Western System.[10]
In 1962, a statutory organization, the Niger Dams Authority (NDA), was formed to build and maintain dams along River Niger and Kaduna River, NDA went on to commission a 320 MW hydropower plant at Kainji in 1969, with the power generated sold to ECN. In 1972 NDA and ECN merged to form the National Electric Power Authority (NEPA). NEPA was the major electricity firm in Nigeria until power sector reforms resulted in the creation of the Power Holding Company of Nigeria (PHCN) and later the privatization of electricity generation and distribution.[10]