In the Grandiose Parlor…

Nigeria to build [tag]nuclear power[/tag] plant. Peter Griffiths, editor of Business in Africa online muses via BiA newsletter:

“Nigeria sees nuclear as a method of securing power post-oil. At some point oil will run out and so this move seems wise enough, however, Nigeria can’t even produce enough energy now and has actually gone backwards over the last 7 years, with the Nigerian National Power Authority (NEPA) failing to maintain electricity installations. Failing to maintain old [tag]electricity[/tag] installations may be a little annoying to customers, but failing to maintain a nuclear station may be a little bit more disastrous: Need I say ‘Boom’?…African states must be aware of the fact that their nuclear ambitions may hurt their own people”

A case of grandiose delusion: wanting to jump before learning to crawl!

Nigeria has been fantasizing about nuclear energy since 1976 when the Nigeria Atomic Energy Commission (NAEC) was first inaugurated. President Obasanjo’s inauguration of the board of the commission brought it back to live from its three decade slumber.

My usual inclination to proceed and continue my rant on the issue but I won’t because there is every indication that Nigeria is full of hot air. And this nuclear energy talk is one instance.

Of the issues needing attention, nuclear energy should be the last; given the unique nature of this business, I wonder, just as Nkem at African Shirts: if Nigeria can not get rid of its domestic waste, how will it manage nuclear?

Tags: Nigeria Governance

“Govt unveils 25-year power generation development plan” goes the headline in one of the Nigerian newspapers- the Guardian: July 29, 2006 edition.

“…The country would achieve power generation capacity of 14,837 MW by 2009 and in 2010 the level will hit 15,853mw…12 different power stations are at various stages of completion to ensure the actualisation of the generation expansion plan, adding that Siemens, a private station would generate 1,000 mega watts, which will be commissioned by the Federal Government in Abeokuta by December 2006.”, according to the Power and Steel Minister, Senator Liyel Imoke.

How many promises and political I.O.U’s have remained unfilfilled since Nigeria gained independence 46 years ago from the British? Didn’t the current administration state that power generation was a priority in 1999 when Mr Obasanjo first became the president?

It might be a better policy for the government to remain quiet because some Nigerians are watching and keeping tabs on these political I.O.U’s.

Related links:
Let there be light
Reforming a utility company
The Aba Clean Energy Carbon Project, Nigeria

Tags: Nigeria Governance Electricity

The Aba Clean Energy Carbon Project is a 120 megawatt plant initiated and being developed in Aba (Eastern Nigeria) by Geometric Power Limited, an indeginous private-sector driven power provider in Nigeria.

According to International Finance Corporation (IFC), one of the financiers of the project, the project “will construct an efficient, gas-fired power plant, which will displace the electricity and steam currently being generated by industrial and large commercial enterprises in the City of Aba, it will [also] introduce an efficient co-generation unit that will reduce GHG [Green House Gas] emissions that are responsible for climate change…”

Alhough 120 MW is a drop in the ocean in regard to the electricity need in Nigeria; however, it is an excellent idea (Nigerianis going green!) and a major boost to the power sector, particularly to Aba- a major commercial city and hotbed for artisans and small-mid sized manufacturing businesses.

Related link: Geometric Power on Timbuktu Chronicles.

Tags: Nigeria Energy Business Technology

At present, power generation in Nigeria is at about 3,000 megawatt; about 50% of what it was earlier in the year, and way less than what it should be for a nation the size of Nigeria- some have estimated that the nation needs at least 120,000MV of power.

I read with dismay that after spending about 1.3 trillion Naira (about 9 billion U.S dollars) on power generation between 1999 and 2005 Nigerians will not enjoy a stable supply of the commodity until 50 years from now! Yes, Nigerians should expect stable electricity by year 2056 if investment in the power sector grows at the same rate as the economy, according to the Nigerian minister for power and steel:

“The current growth of the Nigerian economy stands at seven per cent. If the power sector grows at a rate of seven per cent per annum from now on, we will take another 50 years to catch up on where we should be and that is a real challenge.

“So, if we set a target for growth of the economy at 10 per cent, then indeed, the power sector has to grow in the region of 12-15 per cent, each year. And when you translate that into cash, it means an investment in the region of $10 billion each year.”—Dr Imoke, Nigerian Minister for Power and Steel.

It is puzzling that a nation- that seems so reform-crazy, so eager to liberalize its economy, and whose worn and hoarse head of state have spent more time overseas repeatedly giving sales pitch to foreign investors- has failed to implement any measurable reforms in the power sector. Yet adequate and regular power supply is the number one prerequisite for industrial and economic growth; it is a catalyst that impacts both big and small businesses.

The first noticeable activity in the power sector was not registered until 2005 when the Nigerian Electricity Regulatory Commission was established under the Nigerian Electric Power Sector Reform Act.

Some government sources claim that deregulation in the sector has already led to private sector participation in the power generation and the operation of a number of independent power plants in the country, these achievements appear to exist only on paper and often come to life whenever officials wants to use them as points of reference.

Despite spending $9 billion in six years, power generation is at an all-time low in Nigeria. The excuse for the recent decline in supply has been attributed to the insurgency in the Niger-Delta region, a region that has been volatile for more than 10 years. One wonders if gas is the only ingredent for electricity generation; coal is plentiful in Nigeria, why not use more of it? In 2000, the United States derive 40% of its power supply from coal i.e. 260,990MW of power!

I wonder if there isn’t more going on at the power and steel ministry than meets the eye; an accounting audit may not be entirely out of place in my opinion.

Tag: Nigeria Electricity Governance