Rapid Population, Poor Infrastructure Bane of Public Power Supply-Nebo

Nigeria’s generation and distribution companies are channelling their efforts into boosting the country’s electricity capacity as part of a drive to encourage greater private sector participation in much-needed upgrades, according to Chinedu Nebo, minister of Power.

Nebo told Oxford Business Group (OBG), global publishing, research and consultancy firm, that Nigeria’s rapid population growth and inadequate electricity infrastructure have over time combined to cause power supply problems and the sector is now ripe for an overhaul.
 
“The private sector understands only one language: the bottom line. And the bottom line for generation companies or distribution companies is the same as the bottom line for the Nigerian people: a reliable power supply,” he said.

“As these companies generate and distribute more power to more customers, their profitability increases.”

The full interview with Nebo will appear in The Report: Nigeria 2013, the Group’s forthcoming guide on the country’s economic activity and investment opportunities.

The minister said that privatisation, together with progress in increasing the country’s capacity to transmit generated electricity, would help drive forward the Nigeria Integrated Power Project (NIPP).

“Many of the NIPP projects already have transmission companies embedded in the projects. However, we are speaking with investors, as well as international funding agencies, to strengthen transmission links,” he said.

Nebo added that the government planned to begin paving the way for privatising the NIPP by the end of 2013.

Acknowledging that the government needed to garner public support for the privatisation process, Nebo said the key was to ensure Nigeria’s people understood the wider implications of a more reliable power supply.

“If we want industrialisation, we need power. If we want power, we need these investors. The populace needs to know that,” he said.

The Report: Nigeria 2013 will be a vital guide to the many facets of the country, including its macroeconomics, infrastructure, banking and other sectoral developments. The publication will be available in print or online.