As a result of a long and close cooperation between the Nigerian energy sector and the Nordic countries, a MoU was signed by the Honourable Minister of State for Power Arc. Nuhu Somo Wya and the Nordic Embassies in Abuja (Sweden, Finland and Norway) on April 11th, 2011.
Nigeria being the most populous country in Africa has currently only a capacity of about 4000 MW in operation for energy production. This represents only a fraction of the needs of a rapidly industrializing economy like Nigeria’s.
The Honourable Minister of State for Power Arc. Nuhu Somo Wya. Photo: Ida Marie BakkenThe country is extremely rich with natural resources with a huge potential to increase its production. Hydro, gas, coal, waste, solar and wind are all energy sources of great potential and interest for Nigeria to develop further. Several rehabilitation projects within hydro- and thermal power exists. Nigeria is also aspiring to meet the challenges linked to rapid urbanization and industrialization, such as in terms of waste management.
In August 2010, President Goodluck Jonathan launched “the Roadmap for Power Sector Reform”, see http://www.nigeriapowerreform.org/downloads/. This is based on the energy reform (Electric Power Sector Reform (EPSR) Act of 2005) which was developed by the former President Obasanjo. The main intention with the reform is to remove obstacles and facilitate for private sector investment, with focus on the tariff- and licensing regimes. High priority will be given to assist Independent Power Producers (IPP’s).
In 2005, the reform lead to the establishment of the Nigerian Electricity Regulatory Commission (NERC) and unbundling of the Power Holding Company of Nigeria (PHCN)
6 generation companies, 1 transmission company and 11 distribution companies.
The MoU focuses on cooperation, collaboration and sharing of information between Nigeria and the Nordic countries within the energy sector, aiming to secure and develop the various options for investment opportunities in the Nigerian power sector.
Click here to see the signed MoU-paper
Article by The Nigerian Federal Ministry on Information & Communications