PRZOOM - /newswire/ -
Cape Town, South Africa, 2007/10/23 - New analysis from growth consulting company Frost & Sullivan, Strategic Analysis of the Nigerian Electricity Industry, finds that the market earned revenues of $714 million in 2006 and expects this to reach $2.038 billion in 2010.
Nigerian power sector reforms are slowly breaking the state’s monopoly in the electricity industry. The World Bank and several private companies are investing a substantial amount in improving the capacity and efficiency of the country’s generation, transmission and distribution segments.
New analysis from growth consulting company Frost & Sullivan (energy&power.frost.com), Strategic Analysis of the Nigerian Electricity Industry, finds that the market earned revenues of $714 million in 2006 and expects this to reach $2.038 billion in 2010.
"The National Electric Power Authority (NEPA) has been unbundled into 18 semi-autonomous companies," remarks Frost & Sullivan Research Analyst Moses Duma. "Additionally, at least 20 independent power producers (IPPs) have been licensed to produce or distribute power in Nigeria."
The moves to upgrade power services, emerging service markets, and the installation of new power plants will benefit equipment suppliers. Over $20 billion has been invested in upgrading, maintaining and installing equipment. These efforts are also set to improve the ability of the power sector to meet current and future demand.
However, the Nigerian electricity industry could face some challenges due to an erratic supply of gas from the Niger Delta, since the majority of power plants in Nigeria depend on gas from the Delta region.
"The commissioning of several key power plants such as Geregu, Omotosho and Omoku have been significantly delayed due to the irregular supply of gas," notes Duma. "Meanwhile many existing power plants are also experiencing problems, causing them to operate far below their installed capacity."
The Nigerian Government therefore needs to take a leading role in guaranteeing a reliable supply of gas and water. This is achievable by channelling substantial Government funding towards securing these resources.
In addition, private companies investing in power generation should ensure that they strategically locate their power plants near to these resources. The Government should also offer incentives to prevent oil companies in Nigeria from flaring over 60 per cent of their gas and rather channel it towards power production.
If you are interested in a virtual brochure, which provides manufacturers, end users and other industry participants with an overview of the Strategic Analysis of the Nigerian Electricity Industry, then send an email to Patrick Cairns, Corporate Communications, at patrick.cairns[.]frost.com, with your full name, company name, title, telephone number, fax number and e-mail address. Upon receipt of the above information, an overview will be sent to you by email.
Strategic Analysis of the Nigerian Electricity Industry is part of the Energy & Power Growth Partnership Service programme, which also includes research in the following markets: Country industry forecast: the Indian energy industry; Country industry forecast: the German energy industry; Africa steam and gas turbine markets. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.
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