1. POWER SECTOR REFORMS

Objectives

In order to attract private sector investment and sustain the development of the power sector to ensure uninterrupted and efficient power supply in the country, the NCP defined the objectives for power sector reform as follows:
 
· To promote competition to facilitate more rapid provision of service throughout the country;
· To create a new legal and regulatory environment for the sector that establishes a level playing field, encourage private investment and expertise, and meet social goals;
· To restructure and privatise the National Electric Power Authority (NEPA) now PHCN; and
· To encourage the successors of PHCN  to undertake an ambitious investment programme.

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2. OVERVIEW OF THE POWER SECTOR

Electricity supply in Nigeria is currently being undertaken by the National Electric Power Authority (NEPA), established by Decree No. 24 of 1st April 1972, with the amalgamation of Electricity Corporation of Nigeria (ECN) and Niger Dams Authority (NDA). From a combination of hydroelectric dams, coal and gas power generating sources, it supplies electricity power to an estimated four (4) million customers in Nigeria and the Niger Republic. NEPA, the state-owned, vertically integrated monopoly, controls about 94% of the generation capacity and 100% of the transmission, system operation, distribution and marketing sectors of the industry.

The national electricity grid comprises three (3) hydro and six (6) thermal generating stations with a total installed capacity of 5906MW.

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