On his part, the Director-General, Bureau of Public Enterprises, Alex Okoh, observed the severe shortages the country had suffered in electricity supply in the last three decades, noting that with an estimated population of over 200 million people, peak power production in 2022 hovered around 3,000 to 4,500MW.

He was quoted as saying, “These shortages have had an extremely negative impact on the economy’s ability to grow and the people’s quality of life, hence the obvious need for serious interventions to remedy the situation.”

Okoh said successive governments had, in the past, embarked upon projects and programmes to address the challenges, including the privatisation of the sector and its reform programme.

He said the various programmes were aimed at encouraging private investment and participation in the power sector to augment government’s efforts and interventions in an environment of severe fiscal budgetary constraints.

He further said the Nigerian Electricity Regulatory Commission had projected a 25,000MW increase in Nigeria’s power generation capacity by 2025, with an estimated peak demand of 32,000MW.

“When suppressed demand is factored in, demand is expected to grow to over 60,000MW by the year 2030 if Nigeria is to meet its economic growth aspirations,” Okoh stated.

He added, “This projected supply deficit presents an opportunity for private finance initiatives in the Nigerian Electricity Supply Industry.”

The BPE boss explained that in 2009, Interaf Power Development Company Ltd, promoter of the Makurdi Hydropower Plant, approached the Ministries of Power and Water Resources, with the aim of exploring modalities for developing the hydroelectric project.

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“Consequently, Messrs Makurdi Hydropower Project Company Limited (a joint venture of Interaf Power Development Company Limited and Sinohydro Corporation Limited), produced an Outline Business Case for the development of the Makurdi Hydropower Dam, and the associated power evacuation facilities on a public private partnership basis,” Okoh stated.


He noted that, in furtherance to the ICRC’s revalidation of the OBC, the NCP at its meeting of November 14, 2022, approved the governance framework for the transaction as well as the constitution, membership, and terms of reference of a project steering committee for the transaction in line with the provisions of the ICRC Act 2005, and the National Policy on Public Private Partnership 2009.


“Being an unsolicited proposal, in line with ICRC regulations and international best practice, the NCP also approved the use of the Swiss Challenge methodology for the PPP procurement of the project to ensure that government obtains value for money,” the BPE boss stated.

He added, “The Swiss Challenge method involves the inclusion of other qualified investors in the bidding process. If at the end of the bidding process, the proponent is not the most responsive bidder, it will be given the right to match the most responsive bid to win the concession.

“However, if it is unable to match the most responsive bid, the most responsive bid becomes the winning bid and the project proponent is compensated for investments made developing the project.”

Meanwhile, Minister of Power, Abubakar Aliyu, promised to ensure that power generation reach an expected capacity of 21,713 MW by the end of 2023.

He gave the pledge on Tuesday in Abuja at the 11th edition of the President, Major General Muhammadu Buhari (retd)’s scorecard series.

The minister, who commended the level of growth achieved in the industry, stated that the feat had changed the narrative of the power sector from consumption spending on subsidies to real infrastructure spending.

He noted that a total of 105 power transformer projects were completed between 2015 and 2022, adding a capacity of 6,216MVA to the national grid.

He said, “A review of the Nigerian electricity industry will show you that today, we have a much healthier industry than we inherited from prior administrations. You can’t have stable power without a healthy industry. Our challenge is too big to be shouldered by the government, and investors only put money in sectors that are healthy and performing well.

“By the end of 2023, this administration will bequeath to Nigerians 4000 megawatts of additional generating capacity. We will complete and commission the 700 megawatts Zungeru hydro power plant in the first quarter of 2023.

“We will also see to the operationalisation of other ongoing projects. We will set the country on its stable path for 10,000 megawatts of supply energy. Today, we are at 8000 megawatts with 5000 megawatts on-grid and 3000 megawatts of industrial capacity off-grid. And we will leave an installed capacity of almost 22,000 megawatts.”