IMPROVED POWER SUPPLY

NIGERIANS have again been assured that power problem will soon be over, with 118 power projects at different stages of completion in different parts of the country. 
  This was disclosed by the Chairman of Nigerian Electricity Regulatory Commission (NERC), Dr. Sam Amadi at a monthly breakfast meeting organised by Nigerian-British Chamber of Commerce (NBCC) in Lagos. 
  Speaking on the topic, “Nigerian Power Sector: The New Frontier”, Amadi, admonished Nigerians to exercise  patience as 118 power project presently going on in the six geopolitical zones of the country  will boost power supply when completed.
  He encouraged investors to explore various opportunities in the power sector which is expected to grow from N620 billion in 2013 to over N1 trillion in 2016, saying the commission is working on cost effective tariff to ensure returns on investment.
  Amadi, who was represented by the Deputy General Manager, NERC, Abudulahi Mohammed, said there were huge opportunities in all the sub-sectors of the Nigerian electricity supply industry: gas, generation, transmission and distribution.
  He also admitted challenges within the system, particularly in the area of gas supply saying that most power plants in the country were not working to full capacity.  “Almost all the 20 turbines in the gas-fired thermal generation plants have no gas or very little gas available for use as generating feedstock”.
  The NERC boss said the government was handling the gas issue as a national emergency and is adopting short, medium and long term strategies to end the crisis; stressing that the government was also exploring coal-to-power and other renewable energy sectors for diversification.
  On transmission, he said there was need to prevail on the board of Transmission Company of Nigeria (TCN) to ensure that the Manitoba management contract was fully implemented. “This includes sourcing of funds to strengthen and expand the transmission network”, moreso as “a lot of investment is going into transmission”.
  He appreciated banks from Nigeria for supporting the sector and also encouraged them to continue to live up to expectations. “Investments required in the power sector is highly capital intensive and long-term in nature. Capital market finance is especially attractive to project sponsors as it provides access to fixed-term debt over a longer-term than banks can offer. Thus, huge opportunities exist for increasing sponsors’ return on equity in an industry with huge growth potential,” he said.
  President of NBCC, Prince Adeyemi Adefulu, said Nigerians have been eagerly awaiting the outcome of power privatisation in the country, with many still experiencing blackout, stressing the need for assurance from the authorities, “not just by word of mouth, but with action”.
  He said the privatisation in the power sector has been largely sponsored by financiers who were yet to get their money back and therefore called for strong regulations to safeguard the system in the interest of all.
  He commended Amadi for efforts made in regulating the sector, adding that the chamber, as part of its re-engineering process, will continue to organise programmes that will foster better trade relations and provide directions for stakeholders in the country.