Electricity generation, transmission and distribution in Nigeria

From 1896, when electricity was first installed in Nigeria, to date, there have been lingering challenges with the generation, transmission and distribution. What are the main causes of these challenges, and how can they be addressed? Well, this write-up will first of all shed some light on how generation, transmission and distribution work to power up your homes, and then look at the challenges that make it difficult for these factors to deliver quality and stable electricity to Nigerian homes. Electricity plays a vital role in the day-to-day lives of every Nigerian, powering everything from their homes to communication to transportation to businesses. Understanding the generating, transmission, and distribution of electricity is complex and involves many different aspects. Let’s take a closer look at each aspect of electricity and how they interact on the power grid.

What is electricity?

According to Merriam-Webster Dictionary, electricity is defined as a fundamental form of energy observable in positive and negative forms that occur naturally (as in lightning) or is produced (as in a generator) and that is expressed in terms of the movement and interaction of electrons. The discovery of electricity was first credited to Benjamin Franklin, an American polymath in 1752.

Electricity is a form of energy that is a result of subatomically charged particles like electrons, protons, etc. Electricity is one of the major inventions that changed human civilization. In today’s world, electricity is used to perform several functions and hence becomes a necessity of everyday life.

From elementary science, we know that all matters in this universe is composed of several atoms, and each atom has a certain number of subatomic particles, namely electrons, protons, and neutrons. Where electrons are the negatively charged particles, protons are the positively charged particles, and neutrons are the charge-free or neutral particles.

Understanding electricity generation

Generation of electricity itself is the first part of the process. This is typically done using power plants, which convert various forms of energy into electricity. The most common power generation sources are fossil fuels (such as coal, natural gas, and oil), nuclear power, and renewable energy sources (such as solar, wind, and hydroelectric).

On the other hand, electricity generation is the process of producing electrical power. This phase is the first and perhaps the most critical in the supply chain of electricity. It involves converting primary energy sources such as coal, natural gas, nuclear power, solar energy, wind, or hydroelectric power into electrical energy. The choice of energy source largely depends on geographic, economic, and environmental factors.

Each generation method has its own set of technologies and infrastructures. For instance, a coal-fired plant burns coal to boil water and produce steam, which then drives turbines connected to generators that produce electricity. On the other hand, photovoltaic solar panels convert sunlight directly into electricity using the photovoltaic effect.

Electricity generation facilities are typically large and located away from major urban centers due to their resource requirements (including land costs) and potential environmental impacts. The scale of these facilities and their output varies significantly, from massive nuclear power plants generating thousands of megawatts to small wind farms producing just a few kilowatts.

Transmission and distribution

Transmission and distribution refer to different ways in which electricity is carried from generators to customers. Once energy is generated, it is carried to homes, businesses, and industry via a system of electrical wires known as the grid. Transmission and distribution are two distinct stages on the grid.

Understanding transmission

Energy transmission is the process by which electricity is transported from generation sites, such as power plants, to substations located closer to consumers. Transmission lines span long distances, carrying large amounts of high-voltage energy. The energy within transmission lines flows at a voltage that is too high to be delivered to consumers directly. As a result, energy distributors usually lower the voltage levels of transmitted electricity before delivering it to homes and businesses. Transmission lines can be identified by their stature and structure. These lines are tall, typically 30 feet off the ground, carrying multiple wires and spanning over long distances.

Understanding distribution

The distribution system marks the last stage of the delivery process from energy generation to the consumer. Electricity travels on the distribution system at a voltage that is appropriate for residential and corporate use. Distribution lines can be easily identified by consumers as they run along residential streets. The electricity delivered via distribution lines is used to power appliances and other necessities.

Electricity in pre-independence Nigeria

The first Nigerian electrical power plant was built in 1896, comprising a 30 kw, 1000 volt, 80-cycle, single-phase supply with an additional unit installed in 1902, and by 1909, installed capacity had reached 120 KW with a registered energy demand of 65 KW. In 1920, the installed capacity for the Lagos Marina power station was 420 kW. The first coal-fired power plant was built and commissioned on 1 June 1923 with a total installed capacity of 3.6 MW and a 3-phase, 4-wire, 50-cycle system adopted in 1924, with a shutdown of the Marina site on 28 November 1923. The new power station further grew in installed capacity to 13.75 MW. 

Despite this growth, between 1944 and 1948, Nigeria started experiencing a decline in the use of coal for electricity generation as a result of reduced mining activities, as well as the small discoveries of crude oil to the large-scale discovery of oil in Nigeria in 1956. 

Electricity transmission and distribution after independence

After independence, power transmission started in Nigeria with the interconnection of power stations in Kainji, Jebba, Shiroro, Afam, Delta (Ughelli), Sapele (Ogorode), and Egbin (Lagos) during the first half of the 1960s. During this era, the 330 kV transmission network increased to twenty-eight buses and thirty-two transmission lines. The existing transmission lines increased from thirty-two (32) to sixty-four (64) and buses from twenty-eight (28) to fifty-two (52) between 1998 and 2012. The grid interconnects these stations with fifty-two buses and sixty-four transmission lines of lines and has four control centers (one national control center at Oshogbo and three supplementary control centers at Benin, Shiroro, and Egbin). 

Nigeria’s energy transformation was marked by vertical unbundling of Nigeria’s power sector, resulting in six generating companies and IPPs, which are jointly referred to as Gencos. The transformation started with the establishment of the Electricity Cooperation of Nigeria (ECN) in 1951 and the Niger Dam Authority (NDA) in 1962. The ECN and NDA were merged through Decree 24 of 1972 to form the Nigerian Electric Power Authority (NEPA), later called Power Holding Company of Nigeria (PHCN). In the year 2001, the reform of the electricity sector began with the promulgation of the National Electric Power Policy, which had as its goal the establishment of an efficient electricity market in Nigeria. It had the overall objective of transferring the ownership and management of the infrastructure and assets of the electricity industry to the private sector, with the consequent creation of all the necessary structures required to form and sustain an electricity market in Nigeria.

In 2005, the Electric Power Sector Reform (EPSR) Act was enacted, and the Nigerian Electricity Regulatory Commission (NERC) was established as an independent regulatory body for the electricity industry in Nigeria. In addition, the Power Holding Company of Nigeria (PHCN) was formed as a transitional corporation that comprises of the 18 successor companies (6 generation companies, 11 distribution companies, and 1 transmission company) created from NEPA.

In 2005, the total site rating of installed capacities at all Power Holding Company of Nigeria (PHCN) power stations was 6656.40 MW, but with an average available capacity of 3736.55 MW, hence having a percentage availability of 56.13%. In July 2009, the total installed generation capacity of the PHCN plant was 9,914.4 MW, while 1,115 MW was from IPPs.

In 2O10, the Nigerian Bulk Electricity Trading Plc (NBET) was established as a credible off-taker of electric power from generation companies. By November 2013, the privatization of all generations was complete. Also, by July 2014, the total installed capacity of generating plants increased to 8,876 MW, but with an available capacity of about 3,795 MW.

There are presently 23 grid-connected generating plants in operation in the Nigerian Electricity Supply Industry (NESI) with a total installed capacity of 11,165.4 MW and an available capacity of 7,139.6 MW. Most generation is thermal-based, with an installed capacity of 9,044 MW (81% of the total) and an available capacity of 6,079.6 MW (83% of the total). Hydropower from three major plants accounts for 1,938.4 MW of total installed capacity and an available capacity of 1,060 MW.

Actual electricity supply has been significantly less than load demand; for instance, in 2014 and 2016, the actual supply lagged behind the power demand by 21,639 MW and 23,401 MW, respectively, representing about 15% and 17% of power availability. Thus, there is no corresponding increase in electricity generation as population increases, as shown in 2014, when the country’s population increased to 165 million but the total available power generated stood at 3,795 MW.

Transmission Company of Nigeria (TCN) manages the electricity transmission network in the country. It is one of the 18 companies that was unbundled from the defunct Power Holding Company of Nigeria (PHCN) in April 2004 and is a product of a merger of the transmission and system operations parts of PHCN. It was incorporated in November 2005 and issued a transmission license on July 1, 2006. TCN is presently fully owned and operated by the government, and as part of the reform program of the government, it is to be reorganized and restructured to improve its reliability and expand its capacity.

Currently, the transmission system is made up of about 5,523.8 km of 330 kV lines, 6,801.49 km of 132 kV lines, and 24,000 km of sub-transmission lines (33 kV). The power distribution network is presently made up of 19,000 km of 11kV lines and about 22,500 substations. Currently, 11 electricity distribution companies are covering the entire country.

In 2013, the privatization of 10 distribution companies was completed, with the Federal Government retaining the ownership of the transmission company. The privatization of the 11th distribution company was completed in November 2014. There are currently 11 electricity distribution companies (DisCos) in Nigeria.

In the 1990s, the Nigerian electricity system was failing to meet Nigeria’s power needs, leading to the National Electric Power Policy of 2001 and several other reforms. By the year 2000, a state-owned monopoly, the National Electric Power Authority (NEPA), was in charge of the generation, transmission, and distribution of electric power in Nigeria. It operated as a vertically integrated utility company and had a total generation capacity of about 6,200 MW from 2 hydro and 4 thermal power plants. This resulted in an unstable and unreliable electric power supply situation in the country, with customers exposed to frequent power cuts and a long period of power outages, and an industry characterized by lack of maintenance of power infrastructure, outdated power plants, low revenues, high losses, power theft, and non-cost reflective tariffs.

In 2001, the Independent Power Producers (IPPs) and National Integrated Power Projects (NIPP) were established to remedy the power shortage situation. In 2005, Nigeria had an estimated 6,861 MW of installed electricity-generating capacity.

Sources of electricity in Nigeria

There are many sources of electricity energy in Nigeria. The country has a total installed power generation capacity of 16,384 MW. Power generation in Nigeria is mainly from hydro and gas-fired thermal power plants, with the hydro plants providing 2,062 MW and the gas-fired 11,972 MW. Solar, wind, and other sources such as diesel and heavy fuel oil (HFO) constitute the remainder with 2,350 MW.

On the 28th of February, 2021, the country recorded the highest ever dispatch power of 5,615.40 MW, which was 22 MW higher than and came just three days after the previous peak of 5,593.40 MW was recorded. This is very dismal for a country with an estimated energy demand of more than 98,000 MW.

• Solar

According to the Nigerian Meteorological Agency (NIMET), Africa’s biggest economy is endowed with annual daily sunshine that averages 6.25 hours (Nigerian Energy Report, 2019). Nigeria is one of the tropical countries of the world that lies between 40 and 130 with a landmass of 9.24 × 105 km2 and enjoys average daily sunshine hours, ranging from 3.5 hours at the coastal areas to 9.0 hours at the northern boundary. Nigeria receives about 4.851 × 1012 kWh of energy per day from the sun.

Based on the land area of the country and an average of 5.535 kWh/m2/day, Nigeria has an average of 1.804 × 1015 kWh of incident solar energy annually. This annual solar energy insolation value is about 27 times the nation’s total conventional energy resources in energy units. This means Nigeria has boundless opportunities to tap from the power of the sun for energy.

According to IRENA, Nigeria boasted approximately 28 MW of cumulative installed capacity in 2019. This is in keeping with the upward trend in the country’s solar installed capacity from the 15 MW recorded in 2012 and 19 MW in 2018 (Solar Report of Nigeria, 2021). The Renewable Energy Master Plan targets 500 MW of installed capacity for solar PV in 2025. The assumed potential for concentrated solar power and photovoltaic generation is around 427,000 MW.

At the end of 2019, Nigeria’s estimated installed mini-grid capacity was about 2.8 MW, with 59 projects serving rural consumers. These figures have since changed with more solar mini-grids installed so far in 2020. The commercial and industrial solar market is also on the rise as more companies and businesses adopt the technology to power their operations. However, the market is dominated by small solar and solar home systems.

• Renewable energy

Challenges such as insufficient gas and grid infrastructure have hindered the growth of the traditional power sector and have necessitated the need to move beyond gas-fired power plants to the utilization of renewable energy and supplement on-grid power with off-grid renewable solutions.

Nigeria’s greenhouse gas (GHG) emissions are projected to grow 114% to around 900 million metric tons by 2030, but its NDC aligned to the country’s development policy targets a 20% unconditional and 45% conditional emission reduction below Business as Usual (BAU) by 2030.

Consequently, the Nigerian government has set a capacity expansion target of 30 GW installed on-grid capacity by 2030, with grid-connected renewable energy contributing 13.8 GW (45% of generation) with the inclusion of medium and large hydropower and 9.1 GW (30% of generation) when excluding them.

• Biomass

Nigeria has a substantial biomass potential of about 144 million metric tons per year. According to the U.S. Energy Information Administration, most Nigerians, especially rural dwellers, use biomass and waste from wood, charcoal, and animal dung to meet their energy needs. Biomass accounts for about 80% of the total primary energy consumed in Nigeria. Most of these go towards heating, lighting, and cooking in rural areas.

In November 2016, the Ebonyi State Government took over the United Nations Industrial Development Organization (UNIDO) demonstration biomass gasifier power plant located at the UNIDO Mini-industrial cluster in Ekwashi Ngbo in Ohaukwu Local Government Area of the State. The power plant is to generate 5.5 megawatts of energy using rice husks.

• Hydro

Nigeria is bestowed with large rivers and natural falls and an estimated 1,800 m3 per capita per year of renewable water resources available. The main water resources that provide rich hydropower potential are the Niger River, Benue River, and the Lake Chad basin. Nigeria has six hydropower stations, although not all of them are fully operational. Three major plants are in operation: Kainji (760MW), Jebba (578MW), and Shiroro (600MW). There is also the Mambilla Power project, which is expected to have an installed capacity of 3,050 MW when completed.

Currently, the total installed capacity of hydropower is 2,062 MW. Furthermore, research estimates put the total exploitable potential of hydropower at over 14,120 MW, amounting to more than 50,800 GWh of electricity annually. Hence, there is still an exploitable gap of roughly 85% of potential hydropower yet to be developed.

• Off-grid

According to the REA of Nigeria, developing off-grid alternatives to complement the grid creates a $9.2B/year (₦3.2T/year) market opportunity for mini-grids and solar home systems that will save $4.4B/year (₦1.5T/year) for Nigerian homes and businesses. The agency estimates that there is a large potential for scaling considering the large swath of unserved customer population.

Currently, solar home systems, solar C&I systems, solar minigrids, and other off-grid gas-fired solutions dominate the off-grid space in Nigeria. As of 2019, Nigeria’s total off-grid electricity generation capacity approved by the NERC was about 500 MW. Of this number, solar mini-grids accounted for roughly 3 MW.

• Wind

The current installed yet-to-be commissioned capacity of wind generation stands at 10 MW. The plant, located in Katsina State, was completed in early 2021. According to the ECOWAS Observatory for Renewable Energy and Energy Efficiency, the Katsina Wind Farm would consist of 37 GEV MP 275 kW in northern Nigeria. The completion of the project, which began in 2005, represents a positive step forward in the wind energy space in Nigeria.

NERC as an independent regulator

The Nigerian Electricity Regulatory Commission is an independent body, established by the Electric Power Sector Reform Act of 2005 (repealed), now the Electricity Act of 2023, to undertake technical and economic regulation of the Nigerian Electricity Supply Industry. The Commission is to, among others, license operators, determine operating codes and standards, establish customer rights and obligations, and set cost-reflective industry tariffs. The Commission has its headquarters in Abuja and currently has presence in most states of the country through its Forum Offices, which function as the first level of escalation for customer complaints that are not resolved by the electricity distribution companies (DisCos).

Since inception, NERC has recorded significant achievements, including the expansion of capacity and network by the issuance of licenses for electricity generation, transmission, distribution, and trading, as well as the development of industry codes and standards, market rules, and a multi-year tariff order. In addition, the Commission has issued various regulations and orders that have created an attractive and stable electricity market in Nigeria.

These achievements have been made possible by ensuring that market transactions are rule-based and regulatory interventions are preceded by robust consultative and stakeholder engagement processes to ensure transparency, fairness, and accountability.

These qualities of transparency, fairness, and accountability are critical to NERC Nigeria’s independent apex regulator. The Electricity Act was thorough in ensuring this independence. The Act gave statutory recognition to and enshrined the principle of regulatory independence by providing:

1. For the creation of the apex regulator of the NESI by an Act of the National Assembly rather than by subsidiary legislation. Section 33 (1) of which says:

“ There is established the Nigerian Electricity Regulatory Commission (in this Act, referred to as “the Commission”), which shall be a body corporate with perpetual succession that can sue or be sued in its corporate name and, subject to this Act, perform all acts that bodies corporate may by law perform.”

Section 33(3) further states that “The Commission shall be the apex regulator of the NESI and shall be an independent body in the performance of its functions and exercise of its powers under this Act.”

Regulatory decisions are to be taken by a board of commissioners under Section 35(1), which states that the Commission shall consist of seven full-time commissioners appointed by the President subject to confirmation by the Senate. These Commissioners, under Section 226 of the Act, may make regulations on all matters on which the Commission has powers.

2. Funding from internally generated revenue as well as government subventions. Section 53 of the Act deals with funding for the Commission: “The funds of the Commission shall consist of:

1. fees, charges, and other income accruing to the Commission from licensees and other things done by it in terms of this Act, excluding any fines or penalties recovered under this Act;
2. funds allocated to the Commission by the National Assembly, under a request by the Commission for additional funds required to meet its reasonable expenditures; and
3. such other moneys as may vest in or accrue to the Commission, whether in the course of its operations or otherwise.

Currently, the Commission collects 1.5% of market revenue as a regulatory charge from the market operator. In considering the regulatory fees and charges, it should be noted that:

1. NERC’s responsibility is to regulate standards of performance for all electricity licensees and monitor performance to ensure that those standards are met, maintained, or even exceeded.
2. The regulatory charge is used not only to finance the work of the Commission, including monitoring and enforcement, but is also used to finance the activities of other market working groups, panels, and committees through which much of the consultative, dispute resolution, rule-making, and protection of public interest (especially the rights of customers) is achieved.

3. The Commission has the authority to employ the kind of staff it needs and pay them salaries and allowances that are competitive and capable of retaining them and incentivizing them.

Section 43 empowers the Commission to pay to the Commissioners such salaries and allowances as they determine, having regard to the advice of the National Salaries & Wages Commission. In making recommendations to the Commission, the National Salaries, Incomes, and Wages Commission is to take into account the following principles:

Nature of the commission’s work

1. The need for financial self-sufficiency of the commissioners
2. Salaries paid to individuals of equivalent responsibility, experience, and skills in the private sector
3. The nature of the Commissioner’s expenses
4. Such other considerations may be necessary to arrive at a fair and competitive salary and allowance remuneration for commissioners.

By the provision of the Act, the Commission has the right to approve appropriate salaries for the Commissioners after due consideration of the recommendations of the National Salaries, Incomes, and Wages Commission. The ultimate authority is that of NERC. It is in pursuance of the Act that the pioneer commissioners approved the salaries and allowances of staff and themselves.

The Commission believes deeply in the value that its regulatory independence creates for an electricity market that can only thrive in an environment of certainty. The Commission performs its regulatory functions effectively with the benefit of the laws of independence enshrined in its Act and by recognizing that regulatory independence also coexists with respectful interdependence. As the market develops, it is hoped that the Commission can fully remove itself from government funding. In the meantime, we will continue to emphasize rule-based processes, transparency, fairness, and continuous consultation.

Transmission Company of Nigeria (TCN)

The Transmission Company of Nigeria (TCN) manages the electricity transmission network in the country. TCN is presently fully owned and operated by the government, and licensed activities include electricity transmission, system operation, and GenCos and wheeling it to the DisCos.

Nigeria’s transmission network consists of high-voltage substations with a total (theoretical) transmission wheeling capacity of 7,500 MW and over 20,000 km of transmission lines. Currently, transmission wheeling capacity (5,300 MW) is higher than the average operational generation capacity of 3,879 MW, but it is far below the total installed generation capacity of 12,522 MW. The entire infrastructure is essentially radial, without redundancies, thus creating inherent reliability issues.

The functions and structure of TCN

Based on the history of TCN, the organisation is made up of three operating departments.

1. Transmission service provider 

Oversees the development, maintenance, and expansion of the transmission infrastructure. It is responsible for the national interconnected transmission system of substations and power lines and providing open access transmission services.

2. System operations 

Manages the flow of electricity throughout the power system from generation to distribution companies. This department’s functions include power allocation, grid code administration, voltage and frequency control, economic dispatch of generation units, and ancillary services management, among others.

3. Market operations

Administers the market rules of the NESI. It is responsible for the administration of the electricity market and promoting efficiency in the market.

Challenges and problems of electricity in Nigeria

There are many challenges and problems that surround the power generation transmission and distribution over the years in Nigeria; some of these challenges are associated with transmission, distribution, and general problems. 

• Problems associated with transmission 

The transmission system in Nigeria does not cover every part of the country. It currently has the capacity to transmit a maximum of about 4,000 MW, and it is technically weak, thus very sensitive to major disturbances. In summary, the major problems identified are: 

1. The technologies used generally deliver very poor voltage stability and profiles.
2. There is a high prevalence of inadequate working tools and vehicles for operating and maintaining the network.
3. It is funded solely by the federal government, whose resource allocation cannot adequately meet all the requirements.
4. It is yet to cover many parts of the country. 
5. It’s current maximum electricity wheeling capacity is 4,000 MW, which is awfully below the required national needs.
6. Some sections of the grid are outdated with inadequate redundancies as opposed to the required mesh arrangement.
7. The federal government lacks the required funds to regularly expand, update, modernize, and maintain the network.
8. There is regular vandalization of the lines, associated with low levels of surveillance and security on all electrical infrastructure.
9. There is a serious lack of required modern technologies for communication and monitoring.
10. The transformers deployed are overloaded in most service areas.
11. In adequate supply of spare parts for urgent maintenance
12. Poor technical staff recruitment, capacity building, and training program. 

• Problems associated with marketing and distribution

In most locations in Nigeria, the distribution network is poor, the voltage profile is poor, and the billing is inaccurate. As the department, which interacts with the public, the need to ensure adequate network coverage and provision of quality power supply in addition to efficient marketing and customer service delivery cannot be overemphasized. In summary, some of the major problems identified are: 

1. Poor Billing System
2. Unwholesome practices by staff and very poor customer relations
3. Inadequate logistic facilities, such as tools and working vehicles
4. Weak and Inadequate Network Coverage
5. Overloaded transformers and bad feeder pillars
6. Substandard distribution lines; 
7. Poor and obsolete communication equipment
8. Low staff morale and lack of regular training
9. Insufficient funds for maintenance activities.

• General problems of electricity in Nigeria

From the above-mentioned problems so far, the following are some of the most critical challenges of the power sector responsible for the generation shortfalls, transmission bottlenecks, and distribution problems in Nigeria: 

1. Lack of sustained, sound, and practicable relationships between the Federal Government and other stakeholders, particularly the JV international oil companies and the 
2. Independent Power Producers (IPP)
3. Poor utilization of existing assets and deferred maintenance
4. Delays in the implementation of new projects
5. Inadequate power evacuation at newly completed and fictionalized power plants
6. The Federal Government, being the only provider of funds to expand the National Grid, did not commit the required funds to regularly expand, update, modernize, and maintain the sector.
7. Regular vandalization of the gas lines and cable lines is associated with low levels of surveillance and security on all electrical infrastructure.
8. High prevalence of inadequate working tools, vehicles, and spare parts for operating and maintaining the power system
9. There is a serious lack of required modern technologies or communication and monitoring of the generation, transmission, and distribution infrastructure.
10. Erratic supply of gas domestic resources for power generation
11. The National Grid is yet to cover many parts of the country.
12. Vulnerable and overloaded existing transmission system
13. Poor voltage profile to the tail-end consumer
14. Current maximum electricity wheeling capacity is 4,000 MW, which is awfully below the required national needs.
15. Some sections of the National Grid are outdated with equipment in a state of poor and inadequate maintenance.
16. Low customer satisfaction (load shedding, poor voltage profile, inaccurate billing, difficulties in paying bills, no-notice disconnections, etc.)
17. Poor technical staff recruitment, capacity building, and training program
18. Inappropriate tariff that would enable the utility to get adequate funds to maintain and expand the infrastructure.

Solutions to the problems

To address the challenges stated above, a drastic and innovative strategy is required, most especially as energy generation, transmission, and distribution in Nigeria for appropriate development is a priority issue of government. 

Proper planning and operations 

A comprehensive review of the operation and management of the power sector targeted at efficiency and effectiveness is required. In that respect, the following should be undertaken: 

1. A detailed and practicable power generation, transmission, and distribution master plan for Nigeria for today and the next 25 years should be produced.
2. A detailed cost implication on phased development and operating the power supply system on a state-by-state basis is required.
3. A detailed national load demand study should be carried out with a view to providing reliable information on the current practical and detailed power requirements and a futuristic forecast for the next 25 years.
4. Strategic roles of the States and Local Governments in the implication of the National Masterplan must be explicitly stated.
5. A cost-sharing formula for all tiers of government to fully participate in the development of national power supply must evolve.
6. The institutional arrangement on how the power sector will function with the federal government as the central implementation organ, working in tandem with the states and local governments, should evolve.
7. The clear roles of the states in the energy sector, specifically required to serve as the state monitoring facility on resource contributions, utilization, and system efficiency, should be strategized.

Conclusion

Generation, transmission, and distribution companies work together to power Nigeria’s homes, businesses, and industries, even though they work separately. Now that you know their differences and how they rely on each other, you have hopefully gained a better understanding of how they work to keep Nigeria powered.

References

Nigeria Electricity Sector – energypedia. (n.d.).

Onuoha, K. (2016). The Electricity Industry in Nigeria: What are the Challenges and Options Available to Improve the Sector? SSRN Electron. J., no. May 2010, 2016.

Saunders, T. (2023). Who discovered electricity? Probably not who you’re thinking. BBC Science Focus

Simbi. (2023, May 30). Understanding the differences between transmission, distribution, and power generating companies in Nigeria. BuyPower.ng Blog. Retrieved December 6, 2024

Sule, A.H. (2010). Major Factors Affecting Electricity Generation, Transmission, and Distribution in Nigeria.

The Nigeria Electricity System operator. (n.d.).

Transmission Company of Nigeria. (n.d.).