This Company of Nigeria (PHCN). This was to

This regime affiliated the security of the nation to the supply of
Electricity. It claimed that unemployment the frustration in the country
reduction in growth of Nigeria’s productive and commercial industry are all due
to the combination of the cost of generation and the delayed expansion of the nation’s
grid capacity. It recognized the citizen’s demand for an immediate and real
solution to the angst damaging the industry and even the creativity of the
nation’s population

In response to this demand, the Federal Government accepted the
difficulty in the task but was resolute to eradicate all the issues in the
industry. The Federal Government stressed their decision to return to pursuing
the ground laying changes to the ownership, control and regulation of the
sector as stated in the National Electric Power Policy (2001) and embalmed in
the Electric Power Sector Reform (EPSR) Act of 2005.  

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Their target of 40,000MW by 2020 required investments of at least US$ 3.5
billion yearly for 10 years for just power generating capacity excluding fuel-to-power
infrastructure and  power transmission
and distribution networks. The Government made it clear that the fund would not
come from them but from the private sector’s partnership with them though aware
that improvements cannot be delayed till the commercialisation of the industry.  Therefore a step toward giving a modest but
reasonable increase in the cost and quality of supply of electricity was taken
by the government to His people was.

The roadmap to their power sector reform included;

·       Fulfilling
the Imperative of the Electric Power Sector Reform Act: –    Before this regime, fortunately, the
important milestones in carrying out the EPSR Act had already been achieved
like the creation Power Holding Company of Nigeria (PHCN). This was to be
trailed by the corporatisation, commercialisation, and possible privatization
of the successor organizations, the inflow of a huge volume of private sector
speculation through the production of new power generation and distribution
elements and the ensuing advancement of an aggressive power showcase with a
reasonable, legitimately considered and feasible arrangement for benefit
conveyance in the short and medium term that dovetails with the basic change
basic must be sought after. The Federal Government plan was to expel hindrances
to private segment speculation; clearing up the government’s technique on the
divestiture of the PHCN successor organizations; and changing the fuel-to-power
sector.

·       Removing
obstacles to private sector investment:- The private sector activeness was stated as a means to an end (the
needed growth the rate of service experienced by electricity consumers)
Nevertheless, the steps planned to rapidly increase the flow to the private
sector  includes;

ü The establishment of an
appropriate pricing regime.

ü The establishment of a bulk
purchaser.

ü The provision of FGN Credit
Enhancement

ü Creating an efficient and
motivated workforce.

ü Operationalizing the Nigerian
Electricity Liability Management Company (NELMCO)

ü Contracting out the management
of the Transmission Company of Nigeria (TCN).

ü Clarifying and strengthening the
licensing regime.

ü Strengthening the Nigerian Electricity
Regulatory Commission (NERC)

·       Clarifying
the government’s strategy on the divestiture of the PHCN successor companies: –
In addition to solving
the private sector problems the government also had to clarify their plan in
respect of the disinvestment of the 18 successor companies. Which were;

ü The hydro power generating
plants.

      Grant concessions for the operation of
Kainji, Jebba and Shiroro to announce on the magnitude of the capital needs and
water rights issues connected to these plants

ü The thermal generating plants.

      Privatised via the sale of a minimum of
51% equity to core investors that clearly demonstrate the technical and
financial ability to operate and expand each plant. 

ü The Transmission Company of
Nigeria.

       Be handed over to a credible private
sector company under a five year management contract. 

ü The Distribution Companies.

    To be privatised based on a core investor
offer of at least fifty-one per cent of the government’s value in the companies.
The deal technique will underscore the diminishment of specialized and
commercial misfortunes and expanded productivity of accumulations.

·       Reforming
the fuel-to-power sector:- The
Federal Government was aware of the requirement  for complementary reforms in the upstream fuel-to-power
sector particularly the gas industry  Over
12 months reformation of the gas industry was to take place with the aim to
have positive impact on the electricity industry in upcoming years. Yet in
upcoming years incentives to attract tens of billions of dollars of private
sector capital required will be giving.

·       Improving
Service Delivery Throughout the Transition: – by working on Fuel-to-power,
Generation, Transmission, Distribution, Industry-wide data compilation and
dissemination, Human capital development, Cross-sector discipline, Energy
consumption efficiency all clearly detailed the roadmap for power sector
reforms.