HomeIndustry SectorsFinance and PolicyNigeria requires $40bn to increase electricity generation

Nigeria requires $40bn to increase electricity generation

Robert Dickerman says the Nigerian power sector needs $40 billion to generate 20, 000MW by 2020.

In West Africa, managing director and CEO of Enugu Electricity Distribution Company, Robert Dickerman, stated that Nigeria’s power sector needs approximately $40 billion to improve from the current electricity generation capacity of 4,500MW to 20,000MW by year 2020.

Generation at record low per capita

Dickerman was speaking during the keynote of the 2015 West African Power Industry Convention (WAPIC) in Lagos.

In his speech, Dickerman said that Nigeria’s power sector still has a long way to go in order to achieve extensive growth, as the majority of the population still is without access to power.

He compared Nigeria’s electricity generation per capita to that of India which he said is recorded at 774 units of electricity per capita, while Nigeria generates 156 units – making it the lowest electricity generation per capita globally.

Dickerman said that as a result, distribution companies were finding it hard to distribute power to consumers, and generate enough revenue to operate effectively.

Customers not paying for power rates

According to Dickerman, between 40% and 60% of energy is not being paid for.

‘’The Nigerian Electricity Supply Industry has been in a state of almost constant change and financial crisis since privatisation. One cause of this challenge is a timing mismatch between privatisation expectations and realities.

“The rules of [the] Transition Electricity Market, as declared by the Nigerian Electricity Regulatory Commission require DisCos to remit 100% of their energy and capacity payment upstream, but the industry has not yet solved the puzzle of how to collect anywhere close to 100% of the energy billed to consumers,’’ he stated.

Babalwa Bungane
Babalwa Bungane is the content producer for ESI Africa - Clarion Events Africa. Babalwa has been writing for the publication for over five years. She also contributes to sister publications; Smart Energy International and Power Engineering International. Babalwa is a social media enthusiast.