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PwC identifies power ramp up strategy for Nigeria

A recent report by PricewaterhouseCoopers (PwC) has highlighted that in order for Nigeria to scale up its generation output, an increase in generation, transmission and distribution capacity needs to be achieved.

PwC notes efforts needed

According to the report, titled ‘Powering Nigeria for the Future’, the west African country needs to implement strategies across the supply chain if it is to achieve the target of a yearly per capita power consumption of 982 kWh by 2025.

“Based on ongoing projects, the per capita power consumption in Nigeria will only reach 433 kWh per year in 2025. Given the requirements of the economy and the population, there is a critical need to drive higher power availability, and we believe a stretch target of 982 kWh per year (6.5 times the current level) by 2025 is realistic,” the report explained.

The report identified three ‘substantial leaps’ that need to be implemented over the next 10 years should this goal be attained.

  • Leap 1: Accelerating growth in power generation capacity and improving utilisation
  • Leap 2: Expanding the power transmission network and driving better efficiencies
  • Leap 3: Establishing and scaling up efficient power distribution capabilities

Strategic planning is needed

AllAfrica reported that according to the report signed by PwC’s growth markets centre leader, David Wijeratne, and partner for power and utilities leader, west market area for Africa at PwC Nigeria, Pedro Omontuemhen, in addition to assigning roles and ownership, successful execution of these levers will require careful planning and sequencing, with key dependencies identified.

It added: “For example, revamping the existing infrastructure and implementing efficient processes across the value chain can be a more immediate task for existing players, supported by new participants with key expertise, bringing near term benefits.

“As these improvements take place, the longer and more complex process of policy formulation and attracting new investments for scaling up can be considered independently by the government, regulator and other agencies, in order to lay the platform for the next phase of enhancement of building and operationalising the new projects to power Nigeria for the future.

“Whilst there is no single short-term solution to Nigeria’s power challenges, there are a number of opportunities for companies to bring their global skills and expertise to the table and participate in the journey of powering Nigeria’s long-term growth”.

Ashley Theron
Ashley Theron-Ord is based in Cape Town, South Africa at Clarion Events-Africa. She is the Senior Content Producer across media brands including ESI Africa, Smart Energy International, Power Engineering International and Mining Review Africa.