Introduction
Despite the fact that Nigeria is not lacking in electricity sources as it has abundant hydro, thermal, solar and wind electricity sources to generate adequate power supply; the challenges of adequate power supply provision for its teeming population seem insurmountable.
Experts have argued that the major problems have been the lack of the right political will to do the needful coupled with an abysmal record of improper management of public power bodies.
The first 132KV line in Nigeria was built in 1962, to link Ijora power station in Lagos to Ibadan power station. As the years went on, there were no commensurate deliberate activities on a major scale yearly to continually boost electricity supply infrastructure to a fast growing population. Even when some efforts were made, they were largely lethargic and not holistic until the return of constitutional rule in 1999 and the setting up of the National Independent Power Project (NIPP) in 2005.
Through the National Electric Power Authority (NEPA) and Power Holding Company of Nigeria (PHCN) era, epileptic power supply was the norm and the expectation for stable power supply in the country was continually dashed. Hydro-electric dams went into decay and the transmission and distribution equipment and lines became obsolete. The coming of the NIPP was a most patriotic plan to confront Nigeria’s huge energy crisis and to end it. The National Council of State (NCS) and the
National Assembly approved an initial funding of $2.5billion for the NIPP from the Excess Crude Oil Account.
NDPHC intervention
The Niger Delta Power Holding Company Limited (NDPHC) was incorporated as a limited liability company to serve as the legal vehicle to hold the NIPP assets. In 2008, the National Economic Council (NEC) voted $5.375billion from the excess crude account as Power Emergency Fund (PEF) to complete the NIPP. NEC also inaugurated the NIPP Steering Council in January 2009, chaired by Dr. Goodluck Jonathan, then the country’s vice president with six state governors and four ministers
as members. The NIPP Steering Council, which has transformed as the board of directors of NDPHC is headed by Vice President of Nigeria. In February 2009, the council approved phase-1 budget of $2.213billion from the PEF of $5.375 billion to complete the first phase of the NIPP projects.
It also approved $423.639 million to PHCN as special intervention fund. In June 2010, the council approved $123.110 million to augment the phase 1 budget and N1.750 billion to buy NDPHC corporate headquarters in Abuja. The NDPHC, a child of necessity and baby of the three arms of Nigeria’s government, went on to build several world standard gas turbine plants, distribution and transmission equipment and lines across Nigeria. Under the NIPP, more power stations have
been built in Nigeria for the first time since the country’s independence. These plants have added more megawatts (MW) to the national output.
However, the journey of the NIPP became longer than expected but then it has become a pillar institution in Nigeria’s power sector stability. It has completed eight power plants with combined capacity of 3772 MW. They include: 750MW Olorunsogo II, 450MW Sapele, 434MW Geregu II, 450MW Omotosho II, 450MW Ihovbor, 450MW Alaoji, 563MW Calabar and 225MW Gbarain.
The NDPHC has also completed 2,194km of 330KV transmission lines and 809km of 132KV transmission lines; an increase of 46 per cent and 13 per cent respectively over the pre-NIPP status of grid infrastructure.
It has further constructed a total of 2,600km of 11kv and 1,700km of 33kv distribution lines for improving access to electricity. It is trite that there is heavy dependence on the NIPP plants in bringing electricity supply to Nigerians. In grid instability, NIPP plants provide about 265MW of Spinning Reserves to facilitate grid responsiveness during disturbances on the transmission network.
Spinning reserve is practiced all over the world.
The NDPHC assets are the backbone of Nigeria’s power infrastructure. A transparent privatization process for credible international investors will push the NIPP across the finishing line.
Nigeria’s power generation capacity has risen. So also has been a huge exponential growth in population and the demand for electricity supply. Merging these two has not been easy. But Nigeria’s power distribution system has been enhanced with hundreds of injection sub-stations, 11KV lines and 33KV lines added. Work is also in progress in many more transmission and distribution projects. The massive construction of these power projects by the NDPHC has prevented the total collapse of electricity supply in Nigeria.
Although a 100 percent supply is yet to be attained, things have been stabilised while work on incremental power supply is ongoing.
Some other challenges that the NIPP has had to grapple with include security and community issues; right-of-way challenges for distribution equipment and transmission lines; port clearing coordination hitches and contractor performance-related problems. Even though the three tiers of government own the NIPP, equipment imported for the power projects are often delayed or seized at the ports by the Nigeria Customs Service (NCS) because of non-payment of import tariffs thereby stalling the execution of some power projects.
To fast track the attainment of stable electricity for Nigerians, the federal Government should seriously consider waving duties on equipment for power projects. It needs to seriously educate contractors on their patriotic duty to deliver and on time. There is need for a special para-military unit to ruthlessly tackle the activities of vandals, and address the kidnap of the employees of the contractors.