Electric power generation and distribution is one of the major challenges facing Nigeria today. However, the monstrous problem which has existed for several decades is now an investment opportunity for private power developers as the federal government is inviting individuals and corporate organizations to set up power generation plants with capacity to generate from 2MWt downwards and sell same to the public without requesting for any license.
“We are encouraging people to set up small power generation plants and sell according to their capacity, and not necessarily going for a big project that requires huge amount of money and expertise,” Mr. Raji Fashola, Minister of Power, Works and Housing said during his two-day working visit to Jigawa State, recently.
The federal government is seeking to expand electricity generation to drive growth after the economy contracted in 2016 for the first time in 25 years. The government expects power production capacity to increase to 8,600 megawatts in a year from 7,000 megawats currently. The existing models of power distribution must change if the expansion projection will be met, and one of the quick wins is to get individuals to sell directly to estates and communities especially in remote areas, rather than sell to the national grid. The government is working on regulations to license suppliers of electricity meters to stop some distribution companies from billing arbitrarily.
The opportunity to generate revenue from sales of power to estates and communities is massive. Already, many private firms and individuals generate or have capacity to generate more power than they require and the new window of opportunity offers the opportunity to maximize output and earn income to offset the already high running cost of existing plants.
