ENERGY CRISIS IN NIGERIA: TECHNICAL ISSUES AND SOLUTIONS By Engr. D.J. Obadote B.Eng (Hons); M.Eng.; FCIM; MNSE; MNIEM; R.Eng. Principal Manager (Performance Management) Jebba Hydro Power Business Unit URL: http://www.obadote.com E-mail: obadote@obadote.com ABSRACT For many years now, Nigeria has been facing an extreme electricity shortage. This deficiency is multi-faceted, with causes that are financial, structural, and sociopolitical, none of which are mutually exclusive. Nigeria's power sector has high energy losses from generation to billing, a low collection rate and low access to electricity by the population. There is insufficient cash generation because of these inefficiencies and the power sector is consequently reliant on fuel subsidies and funding of capital projects by the government. At present only 10 % of rural households and 40% of the country s total population have access to electricity. This paper takes a look at technical issues as well as challenges confronting the power sector and suggests solutions to the country s energy crisis. 1.0 INTRODUCTION The history of electricity in Nigeria dates back to 1896 when electricity was first produced in Lagos, fifteen years after its introduction in England [1]. The total capacity of the generators used then was 60KW. In other words, the maximum demand in 1896 was less than 60KW. In 1946, the Nigerian government electricity undertaking was established under the jurisdiction of the Public Works Department (PWD) to take over the responsibility of electricity supply in Lagos state. In 1950, a central body was established by the legislative council which transferred electricity supply and development to the care of the central body known as the Electricity Corporation of Nigeria, ECN. Other Engr. D.J. Obadote, B.Eng, M.Eng, FCIM, MNSE, MNIEM, R.Eng. Page 1
bodies like Native Authorities and Nigerian Electricity Supply Company (NESCO) had licenses to produce electricity in some locations in Nigeria. There was another body known as Niger Dams Authority (NDA) established by an act of parliament. The Authority was responsible for the construction and maintenance of hydro dams and other works on the River Niger and elsewhere generating electricity by means of water power, improving navigation and promoting fish brines and irrigation [2].The energy produced by NDA was sold to ECN for distribution and sales at utility voltages. In first April 1972, the operation of ECN and NDA were merged in a new organization known as National Electric Power Authority (NEPA). Since ECN was mainly responsible for distribution and sales and NDA created to build and run generating stations and transmission lines, the primary reasons for merging the organizations were [3]: It would result in the vesting of the production and the distribution of electricity power supply throughout the country in one organization which will assume responsibility for the financial obligations. The integration of the ECN and NDA should result in the more effective utilization of the human, financial and other resources available to the electricity supply industry throughout the country. Since inception of NEPA, (renamed Power Holding Company of Nigeria, PHCN in year 2004) the authority expands annually in order to meet the ever-increasing demand. Unfortunately, majority of Nigerians have no access to electricity and the supply to those provided is not regular [4]. It is this backdrop that the federal government has embarked on aggressive power sector reforms with the intention of resuscitating PHCN and making it more efficient, effective and responsive to the yawning of the teeming populace. Nigeria is the African continent s most populated country, with over 150 million people. According to the Nigerian Energy Policy report from 2003, it is estimated that the population connected to the grid system is short of power supply over 60% of the time [5]. Additionally, less than Engr. D.J. Obadote, B.Eng, M.Eng, FCIM, MNSE, MNIEM, R.Eng. Page 2
40% of the population is even connected to the grid [5]. On a fundamental level, there is simply not enough electricity generated to support the entire population. This is what informed the calling for this power sector prayer conference. It is a time to seek heaven s intervention for direction and solutions to the sector s crisis. The tables below depict the present generation profiles of hydro and thermal power generating stations in the country[8]. HYDRO INSTALLED PLANTS Plant Age (Years) No of Units Capacity Current No Available Capacity Available Operational Capability Kainji 38 to 40 8 760 6 440 400 Jebba 25 6 578.4 4 385.6 300 Shiroro 22 4 600 4 600 300 Total 18 1938.4 14 1431.6 1000 THERMAL INSTALLED PLANTS Plant Age (Years) No of Units Capacity Current No Available Capacity Available Operational Capability Egbin 23 6 1,320 4 880 600 Egbin AES 7 9 270 9 270 220 Sapele 26 to 30 10 1020 1 90 65 Okpai 3 3 480 3 480 400 Afam 26 20 702 3 350 300 Delta 18 18 840 12 540 330 Omoku 3 6 150 4 100 70 Ajaokuta N/A 2 110 2 100 80 Geregu 2 3 414 3 414 414 Omotosho 1 8 335 2 80 75 Olorunsogo 1 8 335 2 80 35 Total 93 5,976 44 3,384 2,589 Engr. D.J. Obadote, B.Eng, M.Eng, FCIM, MNSE, MNIEM, R.Eng. Page 3
2.0 TECHNICAL ISSUES AND CHALLENGES There are many technical problems and challenges facing the power sector. Below are articulations of the particular problems confronting the various divisions of the sector. 2.1 Generation 2.1.1 Hydropower There are many problems associated with hydropower: i) The current infrastructure of the hydro plants is in dire need of rehabilitation and the actual energy output of the plants is far below their projected capacity. ii) No overhaul of the plants iii) The output of the hydro plants is highly oscillatory according to the seasonal droughts. iv) The trends of climate change have led to a continual loss of water. Since the power output of hydro plants is dependent upon the flow of the river, with less water, there is less potential energy to harness. 2.1.2 Thermal i) Lack of gas supply ii) Maintenance of gas pipelines (pigging, etc) iii) Low gas pressure iv) Political (Niger Delta problem) 2.2 Transmission (The Grid Structure) The grid structure is unstable and vulnerable to sabotage. i) Vandalization of Power Towers. ii) Huge Transmission Losses (about 30-35%) [6], [7], [9]. iii) Power Evacuation problems. 2.3 Distribution i) Network problems (especially during raining season,) ii) Illegal electricity connections either to the national grid or the existing residential/industrial electricity outfit Engr. D.J. Obadote, B.Eng, M.Eng, FCIM, MNSE, MNIEM, R.Eng. Page 4
iii) Overloaded Transformers (results in very low voltages) iv) Over/under billing and payment via unscrupulous business collusion v) Cash collection problems vi) Illegal manipulation of installed meters vii) Corrupt practices of distribution staff (e.g. illegal sales of electricity metres to prospective consumers, vandalisation of equipment, resold in most cases to public/private electricity institutions, etc). 2.4 General i) Old or obsolete equipment ii) Lack of spare parts iii) Loss of time in acquiring available spares (bereaucracy/due process) iv) Political (Niger Delta problem) v) Tariff vi) Government subsidy vii) Poor remunerations (staff welfare) 3.0 SUGGESTED SOLUTIONS Alleviation of the Nigerian energy crisis will require a coordinated effort on the part of the government and the steering leaders of the sector. Stated below are suggested solutions: 3.1 Generation a. rehabilitation and maintenance of existing electricity generating stations to raise the level of effective capacity b. overhaul of the plants as at when due c. construction of new power stations (See Table below) [8] SUMMARY OF ONGOING POWER STATIONS S/No Name 1st Phase Capacity 2nd Phase Capacity * 1 Calabar 561-2 Ihovbor (Benin) 451-3 Sapele 451-4 Egbema 338 - Engr. D.J. Obadote, B.Eng, M.Eng, FCIM, MNSE, MNIEM, R.Eng. Page 5
5 Gbarain 225-6 Omoku B 230-7 Ibom Power 193 450 8 Geregu 414 414 9 Olorunshogo 335 754 10 Alaoji 504 1000 11 Omotosho 335 754 12 Okpai - 450 13 Eket (Mobil JV) 500-14 Obite (Totalfina Elf) 450-15 Ijede (Chevron) 250 800 16 Mambilla (Hydro) ** 2600 - TOTAL 7837 4622 * The second phase is yet to commence ** Mambilla (Hydro): Work has not started Source: [8] d. construction of secondary reservoirs on the Niger river and River Kaduna to assist the main reservoirs during dry seasons. e. signing a pact with the Nigerian Gas company to ensure uninterrupted supply of quality gas to the gas power station. Engr. D.J. Obadote, B.Eng, M.Eng, FCIM, MNSE, MNIEM, R.Eng. Page 6
f. construction of additional (standby) gas pipeline to ensure constant supply of gas during pipiline pigging and other pipeline maintenance. g. Goverment to look into other renewable energy sources like Coal, Nuclear, Solar, Biomass (plant matter grown to generate electricity or produce heat), Wind, Hydrogen, etc. h. Harnessing hydro potentials of small rivers in the country to build mini hydro power stations to supply power to small towns and villages Nigeria s Electrcity Sources S/No Source % Contribution 1 Gas 39.8 2 Hydropower 35.6 3 Oil 24.8 4 Coal 0.4 Source [6] 3.2 Transmission a. 24/7 survillance of power lines and towers, employing the services of village heads that are close to those towers and PHCN chopper. b. Reduce Transmission Losses to bearest minimum with the necessary technology. c. Build more Transmission Lines (Over 90 transmission projects are currently on-going or about to commence at different locations across the country to evacuate and wheel power). Summary is given below [8]: 330kV Lines - +2,194km (46% increase) 132kV Lines - +809km (13% increase) 330kV Substation - +5,590MVA (100% increase) 132kV Substation- +3,313MVA (53% increase) 3.3 Distribution a. general overhaul of distribution network nationwide b. total eradication of illegal connections. Defaulters can be arrested and prosecuted. Engr. D.J. Obadote, B.Eng, M.Eng, FCIM, MNSE, MNIEM, R.Eng. Page 7
c. upgrading distribution transformers via the provision of relief transformers d. installation of higher capacity transformers. e. quick response of maintenance men to breakdowns f. billing must be accurated according to consumption. g. Cash collection problems are now being solved by the use of pre-paid meters. h. A serious check on the corrupt practices of the staff. 3.4 General a. Availability of spares for maintenance as at when due. b. the encouragement of independent power producers to supplement public power supply. c. sourcing for funds from diverse sources for electricity development. d. raising electricity tariffs. e. Lasting peace at the Niger Delta region. 4.0 CONCLUSION Admittedly, the shocks from the electricity crisis in Nigeria have created some wedges in the national wheel of effective management of industrial and the other socio-economic development programmes in Nigeria. Imagine a population of 150 million people depending on less than 3000MW of electricity. Nigeria s economy has been described as a Diesel Generator Economy and small and medium scale businesses incurr extremely high overhead cost maintaining their expensiveeconomically, environmentally and healthwise- fossil fuel powered generators. It is hopeful that if these suggestions are taken seriously added to what the federal government and the sector are doing presently, Nigeria in no doubt will join the advanced nations in singing the song of uninterrupted power supply. Engr. D.J. Obadote, B.Eng, M.Eng, FCIM, MNSE, MNIEM, R.Eng. Page 8
5.0 REFERENCES [1] Niger Power Review, Development of Electricity Industry in Nigeria (1960-1985), 1985, pp. 1-6. [2] Manafa N., Electricity Development in Nigeria, Rasheen Publisher, Lagos, 1995, pp.37-51. [3] Niger Power Review, Development of Electricity Industry in Nigeria (1960-1989), 1989, pp. 10-15. [4] Okoro O. I. and Madueme, T.C., Solar Energy Investments in a Developing Economy, Renewable Energy, vol. 29, 2004, pp. 1599-1610. [5] Okoye J.K., Background Study on Water and Energy Issues in Nigeria The National Consultative Conference on Dams and Development, 2007. [6] Julia Kennedy-Darling et al The Energy Crisis of Nigeria: An Overview and Implications for the Future, University of Chicago, 2008. [7] Ikeme, J., and Obas John Ebohon, "Nigeria's Electric Power Sector Reform: The key objectives?", Energy Policy 33 (2005): 1213-1221. [8] Makoju J.O., A Presentation to the Presidency on Power Sector Status, Issues and Way Forward, 5th June, 2007. [9] Kola Subair and David Mautin Oke, Privatization and Trends of Aggregate Consumption of Electricity in Nigeria: An Empirical Analysis African Journal of Accounting, Economics, Finance and Banking Research (2008), Vol. 3. No. 3. Pg. 21. Engr. D.J. Obadote, B.Eng, M.Eng, FCIM, MNSE, MNIEM, R.Eng. Page 9