A Critical Review on Electric Power Sector for Sustainable Energy Development in Nigeria

Abstract

Electricity is one of the most important invention of Man. It powers the economy and everything in a Nation. This work seeks to carryout a critical review of Nigeria’s energy crisis. A PricewaterhouseCoopers, PwC reports asserts that Nigeria still ranks 2nd worst in the global electricity access charts; a significant portion of electricity is generated from private generators at a higher cost of NGN 120/kWh while grid-based cost NGN 4-5/kWh; more than 50% Nigerians do not have access to electricity, however amongst the other 50% who have access, experience intermittent power supply; 5 - 6 times increase in electricity consumption required to match peer countries with similar GDP per capital; 25 % of potential energy reaches the end-user: Structural inefficiencies across the power value chain prevent electricity from reaching end-users. This work sets out to chronicle Nigeria’s energy crisis: its challenges and prospects. Results from various reviews show that the major issue plaguing the nation’s electricity sector isn’t so much about resources, which the Nation has in abundance, albeit, some in potential state. From the reviews so far, the following are the major problems: 1. The National question 2. Lack of technical know-how 3. Sabotage of government’s efforts and destruction of power sector physical assets. 4. Inconsistency in Policy formulation and implementation. The work therefore, proposes that for the long run, the nation tries to solve her national question; however, for the short run, the Federal Government should adopt the NLNG business model that has produced fantastic results for all its shareholders and stakeholders. The researchers therefore strongly advice the Federal Government to adopt the business model of the Nigeria Liquified Natural Gas, NLNG Company.