"Typically, Nigerians resort to self-generation of electricity; about 81 per cent of the national population (or 130 million Nigerians) generate electricity through alternative sources to compensate for irregular power supply, said Executive Director, Agusto & Co.,
She also said that with an estimated annual economic growth of between seven per cent and 13 per cent, as well as urbanisation rate of 3.8 per cent,
Adelekan added that vast opportunities exist in the power sector for intending investors, given the wide supply-demand gap and the country's huge population.
She disclosed that as at
This, Adelekan added, implies that currently
She stated that the demand for electricity in
Other factors contributing to the country's low electricity generation output is the deplorable condition of some of the PHCN successor generation and distribution companies, as well as high transmission/distribution losses and shortfalls in gas supply.
Agusto & Co puts the estimate turnover of the Industry at over Â'¦380 billion, representing approximately 0.5 per cent of
"The Industry employs about 50,000 workers, majority of which are on the payroll of the PHCN successor companies. Profitability varies from one segment of the Industry to another, with grid-connected generation remaining the most profitable.
This is mainly due to the economies of scale derived by grid connected independent power producers (IPPs) and the PHCN successor generation companies (gencos). Typically, when plants are operating at optimal capacity, grid generation plants record operating profit margins in the region of 15 per cent to 20 per cent (due to economies of scale advantage)," she added.
Most Popular Stories
- Cape Cod Building Mussel Industry
- Hollywood Eager to Grasp Hispanic Market
- Frightfully Fun Films Return for Halloween
- Sears Denies Store Closings, Layoffs Report
- Microsoft Beats Income Expectations
- Would Soccer Be Richer Without Small Clubs?
- Cloud Lifts Microsoft's Quarterly Results
- Pfizer Approves $11 Billion Buyback Plan
- IS Funded by Black Market Oil Sales, Racketeering
- Weekly Jobless Claims Rise but Remain Low