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 Content Editor ‭[2]‬

State of Infrastructure Report Power: (2013/2014)

 Content Editor ‭[1]‬

Electricity is literally the life-wire of the modern economic system, enabling technological growth, industrial production and human development. Several studies have linked electricity consumption to economic growth; higher consumption is associated with higher productivity and higher standard of living and vice versa.

Over the past three decades, Nigeria's economy has been held hostage by chronic spate of poor and unstable electricity supply deriving from a mix of bottlenecks ranging from corruption, underinvestment, population expansion and inefficient technology. Poor and unstable electricity supply has not only led to deindustrialization - a rapid exit of firms from Nigeria occurring over the past three decades –but also severely penalizes productivity and imposes enormous costs, estimated to be around $13 to $26 billion annually, on the citizens. Adding the lost productivity resulting from absent electric power to the opportunity cost of the amount spent on substitute power sources, the cost simply escalates. This cost is well above the estimated annual investment requirement for bridging the infrastructure gap of $10 billion.

This State of Infrastructure Report on Power is CIPRA's periodic report assessing the health of our critical infrastructure assets. This report has therefore, assessed the current state of the Nigerian Electricity Supply Industry (NESI) with a view to highlighting infrastructural deficits inherent in the system. In particular, the report examined the performance of the power sector reform process initiated by the government with a view to evaluating the progress made in such areas as the regulatory framework, privatization of the 17 PHCN successor companies and effective management of the Transmission Company of Nigeria (TCN). The response of international investing community to the efforts of the Nigerian government to attract Foreign Direct Investment into the sector also came under scrutiny. Based on deep industry and technical analysis, the report has come up with informed suggestions on robust and sustainable ways to improve on the power infrastructure.

* Click here to download the report or read online *


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