The purpose of the project is “to contribute to the success of the reform of the electricity sector and to sustain its anticipated positive impacts (towards an inclusive and balanced economic growth) by making available to public and private companies in the electricity sector qualified and well trained personnel”. It has been slightly altered compared to the recommendation made by CPCS in its logframe where it is stated that the overall objective is “to contribute to the success of the power sector reform and its positive impact on economic development, job creation and population well-being by providing to power sector stakeholders skilled workforce adapted to their needs and capacity building”.
The Consultant is of the opinion that only a solid comprehension of the actual situation in the Nigerian Power Sector, its history, evolution, privatization, market situation (offer, demand), donor involvement, and existing challenges, can bring about an appropriate technical approach which is adapted to reality while taking possible future developments into account. |
Nigeria is the biggest hydropower producer and has the largest oil reserves in the Economic Community of West African States (ECOWAS). It also offers great potential for renewable energy. However, the country’s electricity sector is unable to meet the increasing demand for electricity. Currently, only half of the installed capacity of 8,900 megawatts is available on the national power grid, and around 60 per cent of the population has no access to electricity. In rural areas this number increases to over 75 per cent. At the same time, neither industry nor households are sufficiently aware of the importance of using energy efficiently. In order to address the challenges in the electricity sector, the Nigerian Government has initiated various reforms. The Electric Power Sector Reform Act (2005) among others started the process of privatizing the sector. Yet, reforms designed to promote renewable energy sources, energy efficiency and rural electrification have only recently started to be introduced and implemented. For the private sector to play a more active role there needs to be further harmonization across the institutional landscape and between the current political, regulatory and legal frameworks. It is also necessary to build technical and administrative capacities so that the measures introduced by the federal government and the federal states can be properly planned and implemented.
The Electric Power Sector Reform (EPSR) Act was signed into law in March 2005, enabling private companies to participate in electricity generation, transmission, and distribution. The government unbundled the Power Holding Company of Nigeria (PHCN; direct predecessor institution of the National Power Training Institute of Nigeria, NAPTIN) into eleven electricity distribution companies (DisCos), six generating companies (GenCos), and one transmission company (TCN). The Act also created the Nigerian Electricity Regulatory Commission (NERC) as an independent regulator for the sector. All of them are potential clients of NAPTIN.
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