Nigeria remains the most competitive destination with huge untapped resources in power generation, distribution and transmission. Currently, access-to-power is limited to only approximately 40% of the Nigerian population and power supply averages 3,500MW versus a suppressed demand that is estimated at 10,000MW daily. The Federal Government's target is to achieve up to 75% access to electricity by 2020 by connecting an average of 1.5 million households annually through grid extension as well as non-grid solutions using renewable energy (solar, wind, small & medium hydro's).
By 2020, Nigeria's power generation capacity is projected to be in excess of 40GW and energy mix will consist 69% thermal generation; 17% Hydro; 10% Coal; and about 4% renewable. This aspiration of 40GW by 2020 will move Nigeria to a much more stable socio-economic position.
The Federal Government of Nigeria (FGN), recently handed over eleven distribution companies and six generation companies to private investors, after a rigorous privatization process that was globally acclaimed as transparent and ambitious. The power sector required enormous capital to develop and Government cannot fund even a fraction of the necessary investments alone. It has been made apparent that only the private sector can do this.
Policy Thrust
The ultimate policy thrust of the Power Sector to ensure that the sector becomes the engine for growth, for jobs, and for improvements in social welfare by providing reliable and uninterrupted power supply to Nigerians. The successful transfer of ownership and control will catapult Nigeria on to the same growth trajectory as the Brazil, Russia, India China and South Africa (BRICs) and will transform the living standards of all Nigerians.
Investment Opportunities
Nigeria is poised to meet its demands and contribute more to the West Africa power pool. Huge investment opportunities exist in the Nigeria Electricity Supply Industry as local and international investors are encouraged to take advantage of the huge opportunities in the sector, such as:
• Expansion of existing facilities in generation, transmission and distribution
• Manufacturing of wires, cables, Transformers and other auxiliary equipment
• Building new integrated power plants (IPPs) greenfield
• Expansion of existing transmission lines
• Production and distribution of metering devices
• Provision of operations and maintenance services
Special Incentives• Manufacturing of wires, cables, Transformers and other auxiliary equipment
• Building new integrated power plants (IPPs) greenfield
• Expansion of existing transmission lines
• Production and distribution of metering devices
• Provision of operations and maintenance services
• Huge market with abundant opportunities for investors.
• Purely private sector driven
• Extensive gas infrastructure facilities
• Efficient and effective regulatory authority
• Cost Reflective tariff for electricity
• 0% duty on power generation equipment
• 20% capital allowance for 5 years
• Cost Reflective Gas pricing mechanism
• Tax holiday for manufacturing activities (up to 3 years tax holiday renewable for additional 2 year
source: http://www.nipc.gov.ng
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