OVERVIEW OF NIGERIAN ELECTRIC POWER

SECTOR

The reform of the power sector industry arose from the need to introduce private

sector participation in the industry to enhance operational efficiency, attract new

investment and offer better service delivery that unlocks the massive

entrepreneurial and industrial potential that has remained constrained for

decades by the inability to provide clean electricity at steady voltages across the

country.

In November 2005, in accordance with the reform measures mandated by the

Electric Power Sector Reform Act, 2005, PHCN was unbundled into eighteen new

successor companies (six generation companies, one transmission company and

eleven distribution/marketing entities. All the successor companies have been

incorporated under the Companies and Allied Matters Act as independent

limited liability companies.

GENERATION COMPANIES

SHIRORO HYDRO POWER PLC

Shiroro, Niger state, Nigeria

Shiroro Power Plant has an installed capacity of 600 MW and was commissioned

in 1990. The Station‟s annual energy generation in the year 2009 was 2,282.1 GWh

but currently delivers 450MW to the National grid from three of the four units. Unit

411G2 is undergoing comprehensive repairs/overhaul. As Nigeria‟s newest hydro-

electric plant, Shiroro hosts Nigeria‟s SCADA-operated national control centre.

Shiroro is also equipped with switchyard facilities that include a technical “step

down” function for enhanced distribution into the national grid, an advanced

control room and modern training facilities.

The plant is situated at the Shiroro Gorge on the Kaduna River, approximately 60

km from Minna, capital of Niger State, and in close proximity to Abuja, Nigeria‟s

federal capital, for which it is the primary source of electricity.

KAINJI/JEBBA HYDRO POWER PLC

Kainji, Niger State, Nigeria

Kainji/Jebba Power operates as two hydro generation plants, each drawing

water from the River Niger. The combined installed capacity of the two plants is

1330 MW, 760 MW installed capacity for Kainji and 570MW for Jebba. Kainji

currently delivers about 400MW while Jebba contributes 450MW from five (5) units

with one down for major repairs. Kainji began operation as Nigeria‟s first hydro

power plant in 1968 while the Jebba plant was commissioned in 1985. Jebba is

the smallest of the three operating hydro power plants in Nigeria.

In addition to generation facilities, the hydro plants have on-site Medical facilities,

a staff school, a recreation centre, and a training school.

UGHELLI POWER PLC

Ughelli Power Station Complex, Km 27 Effurun-Patani Road, Ughelli, Delta State

Ughelli Power Plc operates a gas-fired thermal plant located in the Niger Delta

region. Ughelli Power is one of the largest thermal generating power stations in

Nigeria. The plant has an installed capacity of 972 MW, with a capacity to

generate 2500 GWh of electricity annually. This plant currently delivers 550MW. It

includes an updated control room and a switchgear room. Ughelli began

operations in 1966.

SAPELE POWER PLC

Sapele, Delta State, Nigeria

Sapele Power Plant is a thermal generating station located in Nigeria‟s Gas rich

Delta State. Sapele has an installed capacity of 1020 MW. Only two (2) of Sapele

Power‟s six 120MW steam turbines are currently operating, producing about

200MW.

Sapele Power is strategically located in the Niger Delta region, close to sources of

both natural gas feedstock and a river for cooling its steam turbine generators.

Sapele Power includes an control room, a switchgear room, a staff training

school, and medical and recreational facilities. Sapele Power began operations

in 1978.

AFAM POWER PLC

Afam, Rivers State, Nigeria

Afam Power Station has an installed capacity of 776MW. The plant was

commissioned in phases. During the Initial phase, the gas turbine units 1-4 were

commissioned during the period 1962-63. During the second phase, gas turbine

units 5 to 12 were commissioned during the period 1976 to 1978. In the third

phase, gas turbine units 13 to 18 were commissioned in 1982. Further, two gas

turbine units were commissioned in 2001 during the final phase of the Afam Power

Station extension. Currently none of the installed units are in service. There are

plans to bring gas turbines 17 and 18 back into service by Dec, 2010. These units

would contribute 127MW to the grid.

NON-OPERATING GENERATION ASSETS

CALABAR THERMAL POWER STATION

Marina, Calabar, Cross River State

Calabar Power Station has an installed capacity of 6.6 MW derived from three

units of 2.2 MW each. Calabar Power was built in 1934 and has not been

operational for the last 10 years. Calabar Power divestiture will be by asset sale.

OJI RIVER POWER STATION

West Bank of Oji River, Achi, Enugu State, Nigeria

Oji River Thermal Power Station was originally built to take advantage of plentiful

nearby deposits of high-grade coal. Oji River Power generated 10 MW of power

from five coal-fired boilers and four steam turbines originally installed in 1956. The

plant was the only coal-fired steam power station in Nigeria but has not operated

for at least 10 years. Water from the nearly Oji River is used to feed the steam

turbines and also for cooling purposes.

Oji River Power divestiture will be by asset sale.

IJORA THERMAL POWER STATION

Ijora, Lagos State

Ijora Power Plant was commissioned in 1956 with coal-fired boilers which are no

longer operational. The plant has a 132/33KV transmission station that is in good

condition, but its 33/11KV transformers need replacement. Although the plant is

currently non-operational, current demand for power, the availability of natural

gas and the government‟s programme for gas utilisation give Ijora Power a

competitive advantage. The location of the plant makes it ideal for an

Independent Power Plant project.

Ijora Thermal Power divestiture will be by asset sale.

DISTRIBUTION COMPANIES

There are eleven Distribution Companies, namely:

Abuja Electricity Distribution Plc

Benin Electricity Distribution Plc

Eko Electricity Distribution Plc

Enugu Electricity Distribution Plc

Ibadan Electricity Distribution Plc

Ikeja Electricity Distribution Plc

Jos Electricity Distribution Plc

Kaduna Electricity Distribution Plc

Kano Electricity Distribution Plc

Port-Harcourt Electricity Distribution Plc

Yola Electricity Distribution Plc

The above listed Distribution Companies comprising a national distribution grid.

The grid, in turn, is managed by a separate company, the Transmission Company

of Nigeria (TCN) PLC, from a national control center at Oshogbo, and a

supplementary center at Shiroro.

TCN is a subsidiary of the Power Holding Company of Nigeria (PHCN).

ABUJA ELECTRICITY DISTRIBUTION PLC 1, Ziguichor Street, Wuse Zone 4, Abuja

Abuja Electricity Distribution PLC, or Abuja Disco, serves central Nigeria from its

base in Abuja, Nigeria‟s capital city in the Federal Capital Territory (FCT). Abuja

Disco established in 1997 following the transfer of the capita from Lagos in1991.

Abuja Disco has a franchise for distribution and marketing in a service zone

comprising Minna, Suleja, Lokoja and Lafia Districts. Abuja Disco owns and

maintains electrical installations and the distribution network within the zone,

manages meter installations, servicing and billing, coordinates consumer credit

services, and collects revenue.

Abuja Disco has a peak load of 835 MW. As of December 31, 2009, Abuja Disco

made up 13% of all collections in distribution. Its revenue ranked third among the

11 Discos for both sale and electricity purchased/ distributed. In 2009, Abuja

Disco‟s combined customer base, consisting primarily of residential and

commercial users, ranked ninth among Nigeria‟s Discos, according to a due

diligence study conducted by independent consultants.

The Shiroro Hydro Station, located approximately 245km from Abuja, is a major,

seasonal supplier of Abuja Disco‟s electricity over 330Kv lines. Despite past

investment, the demand for electricity in the Abuja Disco service zone exceeds

the supply. Increasing population and commercial activities continue to add to

that demand. In 2005, Abuja Disco intensified collection efforts with installation of

pre-payment meters, route sequencing, bulk, and feeder-by-feeder energy

audits.

As at 2008, Abuja Disco had a customer base of 469,306 customers.

BENIN ELECTRICITY DISTRIBUTION COMPANY PLC

5, Akpakpava Road, Benin City

Benin Electricity Distribution PLC, Benin Disco, serves a primarily industrial customer

base in Delta, Edo, Ondo, and Ekiti States, Nigeria‟s industrial mid-West, a region

dominated by oil and energy-related companies. The districts in the Disco include

Ado-Ekiti, Afenmesan, Akure, Asaba, Akpakpava, Ugbowo, and Warri. Benin

Disco maintains electrical infrastructure form its base in Benin City, Edo State,

considered the South East regional gateway. Benin Disco owns and maintains

electrical installations and servicing, billing, coordinates consumer credit services

and collects revenue.

In 2005, Benin Disco intensified collection efforts with installation of pre-payment

meters, route sequencing, bulk, and feeder-by-feeder energy audits. As a result,

as of November 2005, most of the districts within the Disco recorded above 50%

collection rate for the total energy billed for the period. In 2009, its collections

made up 11% of the total for the industry.

As at 2008, Benin Disco had a customer base of 529,341 customers. Currently,

Benin Disco has a peak load of 1000MW.

EKO ELECTRICITY DISTRIBUTION PLC

13/ 25 Marina, Lagos State

Eko Electricity distribution PLC, Eko Disco, located in Lagos, serves Nigeria‟s

commercial and financial hub, and the Agbara industrial region. This base

includes a class of customers who are „ready to pay‟ higher rates in exchange for

reliable service and adequate supply so as to eliminate the time and expense of

supplying supplemental power, long a problem in Nigeria.

Eko Disco has a franchise for distribution for Festac, Ijora, Lagos Island, Ajah and

Agbara/ Badagry districts of Lagos South. Eko Disco owns and maintains electrical

installations and the distribution network, manages meter installations and

servicing, billing, coordinates consumer credit services, and collects revenue from

its base on Victoria Island, the very heart of the Lagos business district.

In 2005, Eko Disco intensified collection efforts with installation of pre-payment

meters, route sequencing, bulk, and feeder-by-feeder energy audits. In 2009, Eko

Disco accounted for 13% of total collections.

As at 2008, Eko Disco had a customer base of 266,075 customers. Currently it has

a peak load of 1105MW

ENUGU ELECTRICITY DISTRIBUTION COMPANY PLC

Michael Okpara Avenue, Enugu, Enugu State

Enugu Electricity Distribution PLC, or Enugu Disco, located in Nigeria‟s South east

zone, distributes and markets electricity in franchise area that includes Abia,

Anambra, Ebonyi, Enugu and Imo States. The franchise area is further subdivided

into 10 districts, namely, Aba, Abakaliki, Abakpa, Akwa, Ogui, Onitsha, Orlu,

Owerri, Nnewi, and Umuahia. The Aba and Onitsha districts are home to two of

Nigeria‟s major domestic commercial/ industrial centers.

In 2005, Enugu Disco intensified collection efforts with installation of pre-payment

meters, route sequencing, bulk, and feeder-by feeder energy audits, beginning

with Aba and Onitsha business units. The new revenue generation capacity

together with metering/ billing efficiencies have led to an average monthly

increase of approximately 32percent. In 2009, Enugu Disco accounted for 10% of

total collections.

Enugu Disco‟s user base includes a class of customers who are „ready to pay‟

higher rates in exchange for reliable service and adequate supply so as to

eliminate the time and expense of supplying supplemental power, long a

problem in Nigeria.

As at 2008, Enugu Disco had a customer base of 545,103 customers and currently

has a peak load of 1017MW.

IBADAN ELECTRICITY DISTRIBUTION PLC

Capital Building, Ring Road, Molete, Ibadan, Oyo State

Ibadan Electricity Distribution PLC, or Ibadan Disco, located in South Western

zone of Nigeria, has a franchise for distribution and marketing electrical service in

parts of Ogun, Osun and Kwara States. The Ibadan Disco Zone, in turn, is

subdivided into eight districts, namely, Abeokuta, Dugbe, Molete, Ijebu-Ode,

Oshogbo and Ilorin, Sango-Ota and Oyo.

The Ibadan Disco service area includes Sango-Ota Industrial estate, Oluyole

industrial estate and the recently launched White Farmers Programme in Kwara

State, all major industrial users of electricity. Within the zone, Ibadan Disco owns

and maintains distribution network and supporting equipment, manages meter

installations and servicing, billing, coordinates consumer credit services, and

collects revenue. In 2009, its collections made up 14% of the total for the industry.

In 2005, Ibadan Disco distributed 13% of Nigeria‟s total electrical energy

consumed. In the Ibadan Disco service area, demand continues to grow, driven

largely by industries in Sango-Ota and Oyo States which together account for 805

of the total revenue generated. The consumers who are „ready to pay‟ higher

rates in exchange for reliable service and adequate supply so as to eliminate the

time and expense of supplying supplemental power, long a problem in Nigeria.

In 2005, Ibadan Disco intensified collection efforts with installation of pre-payment

meters, route sequencing, bulk, and feeder-by-feeder energy audits. As a result,

percentage of revenue collected to amount billed, increased across all districts.

As at 2008, Ibadan Disco had a customer base of 812,000 customers. It currently

has a peak demand of 1193MW

IKEJA ELECTRICITY DISTRIBUTION COMPANY PLC

Secretariat Road, Alausa, Ikeja, Lagos

Ikeja Electricity Distribution PLC, or Ikeja Disco, located in Lagos has a franchise for

distribution and marketing electrical service in the Ikeja zone which includes parts

of Lagos State. The Ikeja Disco Zone, in turn, is subdivided into seven districts,

namely, Ikeja, Shomolu, Alimosho, Ojodu, Ikorodu, Oshodi and Abule-Egba.

Ikeja Disco service area includes Ikeja Industrial estate, but otherwise, has

predominately residential consumers near Lagos, Nigeria‟s leading commercial

and financial center. Within the zone, IKeja Disco owns and maintains distribution

network and supporting equipment, manages meter installations and servicing,

billing, coordinates consumer credit services, and collects revenue.

In the Ikeja Disco service area, demand continues to grow, driven largely by the

Ikeja industrial estate and a class of consumers who are „ready to pay‟ higher

rates in exchange for reliable service and adequate supply so as to eliminate the

time and expense of supplying supplemental power, long a problem in Nigeria.

In 2005, Ikeja Disco intensified collection efforts with installation of pre-payment

meters, route sequencing, bulk, and feeder-by-feeder energy audits. As a result,

percentage of revenue collected to amount billed, increased across all districts,

from a „low‟ of 80% to a „high‟ of 87%. In 2009, its collections made up 17% of the

total for the industry.

As at 2008, Ikeja Disco had a customer base of 535,692 customers. It has a peak

load of 1335MW.

JOS ELECTRICITY DISTRIBUTION COMPANY PLC 9, Ahmadu Bello way, Jos Plateau State, Nigeria

Jos Electricity Distribution PLC, or Jos Disco, located in North Eastern part of

Nigeria, serves a significant industrial customer base in Bauchi, Benue, Gombe,

and Plateau States, as well as Saminaka in Kaduna State. The Jos Zone is, in turn,

subdivided into four districts namely Jos, Bauchi, Gombe and Makurdi. The Jos

Disco is the fourth largest distributor in Nigeria covering more than 610,000sq Km,

with a population of more than 13 million. Jos Disco is the center of Nigeria‟s

mining industry and currently has a peak load of 507MW

In the Jos Disco service area, demand continues to grow, driven largely by an

industrial and a class of consumers who are „ready to pay‟ higher rates in

exchange for reliable service and adequate supply so as to eliminate the time

and expense of supplying supplemental power, long a problem in Nigeria. Jos

Disco estimates revenues increasing by much as 80% in the next four-to-five years

as a result of new distribution capacity combined with improved tariffs, new

metering/ billing efficiencies, improved collections, and growing customer base.

As at 2008, Jos Disco had a customer base of 277,626 customers. In 2009, Jos

Disco accounted for 4% of total collections.

KADUNA ELECTRICITY DISTRIBUTION PLC Savannah Building, Ahmadu Bello Way, Kaduna

Kaduna Electricity Distribution PLC, or Kaduna Disco, located in North Central

region of Nigeria, has a franchise for distribution and marketing of electricity in the

Kaduna Zone, which includes the Makera, Doka, Birnin Kebbi, Gusau, Sokoto, and

Zaria Districts.

The company owns and maintains the distribution network and support

equipment within the zone, manages meter installation and servicing, billing,

coordinates consumer credit services, and collects revenue.

Kaduna Disco serves a predominately commercial economy, anchored by cities

of Kaduna and Zaira with banks, hotels, corporate headquarters and offices of

prominent commercial customers.

The Disco has a class of customers who are „ready to pay‟ higher rates in

exchange for reliable service and adequate supply so as to eliminate the time

and expense of supplying supplemental power, long a problem in Nigeria.

The Disco‟s customers include industrial, residential, and special tariff end users.

In 2008, Kaduna Disco distributed 6.2% of Nigeria‟s total electrical energy

consumed. In the Kaduna Disco service area, demand continues to grow, driven

largely by customers in Kaduna and Zaira. Its peak load is 520MW

In 2005, all the districts recorded improved collections largely in response to

improved metering/ billing efficiencies. With improved tariff, additional distribution

capacity and improved collections, Kaduna Disco projects doubling revenue in

the next four- five years. In 2009, Kaduna Disco accounted for 6% of total

collections.

As at 2008, Kaduna Disco had a customer base of 285,736 customers.

KANO ELECTRICITY DISTRIBUTION COMPANY PLC 1, Niger Street Kano, Nigeria

Kano Electricity Distribution PLC, or Kano Disco, located in North Western zone of

Nigeria, has a franchise for distribution and marketing of electricity in Kano,

Katsina and Jigawa States, through seven districts, namely, Nasarawa, Dala,

Katsina, Dutse, Kumbotso, Funtua, and Dakata. The company owns and

maintains electrical installations and the distribution network within its franchise

zone, manages meter installations and servicing, billing, coordinates consumer

credit services, and collects revenue.

In 2005, Kano Disco intensified collection efforts with installation of pre-payment

meters, route sequencing, bulk, and feeder-by-feeder energy audits. Kano

Disco‟s projection indicates that revenues will double in four-to-five years as a

result of new distribution capacity, improved tariffs, new metering/ billing

efficiencies, improved collections, and a growing customer base. In 2009, Kaduna

Disco accounted for 5% of total collections.

As at 2008, Kano Disco had a customer base of 489,965 customers and currently

has a peak load of 596MW

PORT-HARCOURT ELECTRICITY DISTRIBUTION COMPANY PLC 42, Obiwali road, Rumuigbo, Port-Harcourt, Nigeria

Port-Harcourt Electricity Distribution PLC, or Port-Harcourt Disco, serves Bayelsa,

Cross River, Rivers, Akwa-Ibom and parts of Delta States in Nigeria‟s industrial

South-South Zone, a region dominated by oil and energy-related companies. The

Port-Harcourt Disco is, in turn, subdivided into six districts, namely, Calabar, Diobu,

Ikom/ Ogoja, Borikiri, Uyo and Yenegoa.

Port-Harcourt Disco owns and maintains the distribution network and supporting

equipment, manages meter installations and servicing, billing, coordinates

consumer credit services, and collects revenue.

In 2005, Port-Harcourt Disco intensified collection efforts with installation of pre-

payment meters, route sequencing, bulk, and feeder-by-feeder energy audits. As

a result, percentage of revenue collected to amount billed, increased across all

districts. In 2009, its collections made up 5% of the total for the industry.

In the Port-Harcourt Disco service area, demand continues to grow, driven

largely by the industrial demand and a class of consumers who are „ready to

pay‟ higher rates in exchange for reliable service and adequate supply so as to

eliminate the time and expense of supplying supplemental power, long a

problem in Nigeria.

As at 2008, Port-Harcourt Disco had a customer base of 347,789 customers.

Currently it has a peak load of 773MW.

YOLA ELECTRICITY DISTRIBUTION PLC Garden Office, Mohammed Mustapha Way, Jimeta, Adamawa State

Yola Distribution PLC, or Yola Disco, is located in North Eastern part of Nigeria,

near Yaoundé, Cameroon, and the Chad and Niger borders, dominated

primarily by agricultural customers in Adamawa, Borno, Taraba, and Yobe States.

The Yola Disco is subdivided into four districts, namely, Yola, Maiduguri, Taraba

and Damaturu.

In the Yola Disco service area, demand continues to grow, driven largely by

industrial customers and a class of consumers who are „ready to pay‟ higher rates

in exchange for reliable service and adequate supply so as to eliminate the time

and expense of supplying supplemental power, long a problem in Nigeria.

In 2005, Yola Disco intensified collection effort with installation of pre-payment

maters, route sequencing, bulk, and feeder-by feeder energy audits.

As at 2008, Yola Disco had a customer base of 89,665 customers and currently has

a peak load of 176MW. In 2009, its collections made up 2% of the total for the

industry.