1. THE NIGERIAN ELECTRICITY SUPPLY INDUSTRY: KEY PLAYERS AND THEIR ROLE
The electricity industry in Nigeria can be likened to a supply chain for any fast moving consumer goods where
there are producers, wholesalers, retailers, final consumers and industry regulators. These all work together
to ensure there is a balance between demand and supply along the value chain and that the product reaches
consumers at the standard quality and price. In this article, we are going to consider the various components
of the electricity industry in Nigeria and their roles with a view to understanding how the industry works.
Due to the interconnectivity between the various components (players) and the complexity arising
therefrom, I would try as much as possible to adopt the simplest approach to describing how the system
works.
So, let’s go!
The Electric Power Sector Reform (EPSR) Act 2005 is regarded as the ‘bible’ for the electricity industry in
Nigeria. It is the single Act that authorized the formation, licensing, transfer of assets and liabilities and
subsequent privatization of successor companies of the defunct National Electric Power Authority (NEPA).
The EPSR Act also established a regulatory commission for the industry and outlined its powers. At the
moment, the key players in the industry are: Fuel Suppliers (for thermal power plants); Generation
Companies (GENCOs); Transmission Company (TRANSYSCO); Distribution and Retail Companies (DISCOs);
Consumers; the Nigerian Electricity Regulatory Commission (NERC); the Nigerian Bulk Electricity Trading Plc
(NBET); the Nigerian Electricity Liability Management Company (NELMCO); and the Federal Government of
Nigeria through the Federal Ministry of Power (FMoP). Before we begin to look at each of these players and
what role they play in ensuring power is available to every part of the country, let us first of all have a review
on how electricity is generated, transmitted and made available to homes and industries.
Using thermal power generation as case study, the chemical energy of a fuel type (coal, natural gas, high
pour fuel oil or low pour fuel oil/diesel) is converted to heat energy in a steam generator (steam power
plants) or combustor (gas power plant). In the case of steam power plants, the heat of combustion in the
steam generator is absorbed by demineralized (chemically pure) water which boils to steam. The steam is
collected in a drum, superheated and then sent to a steam turbine at high pressure. Inside the turbine the
steam expands (does work) by rotating the turbine blades and rotor assembly. The rotor of the steam turbine
is coupled to that of a generator and hence, voltage is induced according to Faraday’s Law of Electromagnetic
Induction. For the gas turbine where there is no steam, the combusted (flue) gases at high pressure are
channelled to the turbine and work is done as in the case of the steam turbine with voltage induced at the
generator. The induced voltage is usually too small for long distance transmission (between 11kV and 20kV).
Hence a power (step up) transformer is used in stepping the voltage up to 330kV. From the plant, it enters
into a switchyard from where it is transmitted through the National Grid to various substations across the

2. country. The transmitted power once it reaches its destination is stepped down from 330kV to 132kV, 33kV,
11kV and 415V (three phase) or 220V (single phase) for different categories of consumers. In practice, the
process of power generation, transmission and distribution is more complex than explained. Please watch
out for my article Power Generation 101: How Electricity is Generated in Nigeria for more details.
Back to Our Discussion on Industry Players.
Now that we have seen how power is generated, transmitted and distributed to consumers, let us now talk
about the people that make it happen. Remember it started with combustion of fuel, so let’s first of all talk
about how fuel is delivered to power plants.
Fuel Sources and Suppliers
Most of the power plants in Nigeria are thermal power plants and they depend solely on high calorific value
fuel for their operation. For the steam power plants and gas power plants, natural gas is the major fuel used
while for the coal-fired power plants, coal is used. The International Oil Companies operating in the country
(Shell, ExxonMobil, Total, Chevron, Agip etc) are the major producers of natural gas. The gas is delivered to
the Nigerian Gas Company (NGC) which is a subsidiary of the Nigerian National Petroleum Corporation
(NNPC). NGC then supplies natural gas (after treatment) through gas pipeline systems to power plants under
Gas Supply Agreements and are paid in return. Since there are no storage facilities for natural gas within
power plants, the gas has to be burnt as they are being delivered. Any disruption of the flow of the gas such
as vandalism of the pipeline, has serious consequence on power generation as the thermal plants shut down
their turbine generator units. Some of NGC gas network system include: Sapele Gas Supply System which
serves power plants at Sapele, Delta State; Ajaokuta – Geregu Gas Pipeline System which serves power plants
at Geregu, Kogi State; Obigbo North – Afam Pipeline System serves power stations at Afam, Rivers State;
Alakiri – Obigbo North – Ikot Abasi pipeline system serves power station at Ikot Abasi, Akwa Ibom State;
Escravo – Lagos Pipeline serves power plants at Egbin (Lagos), Ugheli (Delta), Papalanto (Ogun), Omotosho
(Ondo) and other independent plants along the south western axis; etc.
Coal Power in Nigeria is still under development after the first coal plants established before the country’s
independence became obsolete. With large deposits of coal in the South-Eastern part of the country, one
can hardly envisage a shortage in supply to these new power plants.
Generation Companies (GENCOs)
The duty of power generation companies like the name implies, is to generate quality electric power for
onward transmission across the country through the national grid. By quality it implies that the voltage must
be stepped up to 330kV or 132kV (transmission voltages) to reduce losses along the line. It must also have
the right alternating frequency (50Hz) and phase angle. Apart from power plants that generate power

3. directly to the national grid, some power plants generate power basically for industrial processes (captive
generation) while others only generate to feed a particular locality (embedded generation). Please refer to
Table 1.0 to see licensed power generation companies in Nigeria.
Transmission Company (TRANSYSCO)
The business of transmitting electricity across the length and breadth of Nigeria is the exclusive preserve of
the Transmission Company of Nigeria (TCN). TCN is one of the successors of the unbundled Power Holding
Company of Nigeria (PHCN) and is currently an asset held under the custodianship of the Federal Ministry of
Power. It remains publicly owned though Government has the intention of privatising it in future. TCN has
the responsibility for the management of operation, maintenance and expansion of 132kV and 330kV
transmission system. In literal terms, TCN acts as a transporter who receives generated power from power
plants, transports it to various load centres across the country, steps it down, hands it over to distribution
companies and is paid for its services (wheeling charge). In carrying out its responsibilities, the company has
three semi-autonomous divisions namely, Transmission Service Provider (TSP), System Operator (SO) and
Market Operator (MO). While Market Operator takes care of the commercial aspect of the company’s
business, System Operator and Transmission Service Provider handle the operation and maintenance of
transmission networks respectively. The Bureau of Public Enterprises (BPE) appointed a management
contractor, Manitoba Hydro International (MHI) for TCN which took over administration of the functions of
the TSP, SO and MO and the overall management of the company.
Distribution Companies (DISCOs)
An electricity distribution company is that company that sells electricity directly to consumers. They take
care of the metering, servicing and maintenance of the 33kV, 11kV and 415V distribution systems. In Nigeria
presently, there are eleven DISCOs which evolved from the unbundling and subsequent privatization of
successor companies of PHCN. Please also see Table 1.0 below for information on the eleven DISCOs in
Nigeria.
Table 1.0 Licenced Operators in the Nigerian Electricity Supply Industry
Name Licence Type Site Location Capacity
Aba Power Ltd Distribution Aba, Abia State
Abuja Electricity Distribution Co Plc Distribution
Loma-Mansa Street, Wuse
Zone 4, Abuja
FCT, Niger,
Kogi and
Nassarawa
AES Nigeria Barge Ltd
270MW Generation
On-Grid

4. Afam Power Plc Generation On-Grid Afam, Rivers State 987.2MW
African Oxygen and Industrial
Gases Ltd Generation Off-Grid Ikorodu, Lagos State 19MW
Agbara Shoreline Power Ltd Generation On-Grid Agbara, Ogun State 100MW
Akute Power Ltd Generation Off-Grid Lagos Water Corporation 13MW
Alaoji Generation Co. Ltd (NIPP) Generation On-Grid Alaoji, Abia State 1074MW
Anita Energy Ltd Generation On-Grid Agbara, Lagos State 90MW
Azura Power West Africa Ltd Generation On-Grid
Ihovbor, Benin City, Edo
State 450MW
Benin Electricity Distribution Co Plc Distribution
5 Akpakpava Street, Benin
City, Edo State
Edo, Delta,
Ondo and Ekiti
Benin Generation Company Ltd Generation On-Grid Ihonvbor, Edo State 450MW
Calabar Generation Company Ltd Generation On-Grid Calabar, Cross River State 561MW
Century Power Generation Ltd Generation On-Grid Okija, Anambra State 495MW
CET Power Projects (Ewekoro) Generation Off-Grid
WAPCO Ewekoro, Ogun
State 6MW
CET Power Projects Ltd Generation Off-Grid Tinapa, Cross River State 20MW
CET Power Projects Ltd Generation Off-Grid
Nigerian Breweries Ltd,
Iganmu, Lagos 5MW
CET Power Projects (Sagamu) Generation Off-Grid
WAPCO Sagamu, Ogun
State 7MW
ContourGlobal Solutions (Nig) Ltd Generation Off-Grid NBC Bottling Plant, Ikeja 10MW
ContourGlobal Solutions (Nig) Ltd Generation Off-Grid NBC Bottling Plant, Apapa 4MW
ContourGlobal Solutions (Nig) Ltd Generation Off-Grid NBC Bottling Plant, Benin 7MW
Coronation Power and Gas Ltd Generation Off-Grid Sango Otta 20MW
Delta Electric Power Ltd Generation On-Grid
Oghareki, Ethiope West
LGA 116MW
DIL Power Ltd Generation On-Grid
Cement Factory, Ogun
State 114MW
Egbema Generation Company Ltd Generation On-Grid Egbema, Imo State 338MW
Egbin Power Plc Generation On-Grid Egbin, Lagos State 1320MW
Eko Electricity Distribution Co Plc Distribution 24/25 Marina, Lagos Lagos South
Eleme Petrochemical Company Ltd Generation On-Grid
Eleme Complex, P.H.
Rivers 135MW

5. Energy Company of Nigeria
(NEGRIS) Generation On-Grid Ikorodu, Lagos State 140MW
Energy Company of Nigeria Ltd Generation Off-Grid
Nestle, Agbara, Ogun
State 3MW
Energy Company of Nigeria Plc Distribution
Lateef Jakande Road,
Ikeja, Lagos State
Marina, Lagos
State
Enersys Nigeria Ltd Generation On-Grid Ado-Ekiti, Ekiti State 10MW
Enugu Electricity Distribution Co
Plc Distribution
12 Station Road, Enugu
State
Enugu, Abia,
Imo, Anambra
and Ebonyi
Ethiope Energy Ltd Generation On-Grid
Ogorode, Sapele, Delta
State 2800MW
Ewekoro Power Ltd Generation Off-Grid Ewekoro, Ogun State 12.5MW
Farm Electric Supply Ltd Generation On-Grid Ota, Ogun State 150MW
First Independent Power Co. Ltd Generation On-Grid Omoku, Rivers State 150MW
First Independent Power Co. Ltd Generation On-Grid Trans-Amadi, Rivers State 136MW
First Independent Power Co. Ltd Generation On-Grid Eleme, River State 95MW
Fortune Electric Power Co. Ltd Generation On-Grid
Odukpani, Cross River
State 500MW
Gateway Electricity Ltd Distribution Off-Grid VI, Lagos
Certain
locations not
covered by
defunct PHCN
in Ogun State.
Gbarain Generation Company Ltd Generation On-Grid Gbarain, Bayelsa State 225MW
Geometric Power Ltd Generation On-Grid Aba, Abia State 140MW
Geregu Generation Company Ltd Generation On-Grid Geregu II, Kogi State 434MW
Geregu Power Plc (BPE) Generation On-Grid Geregu, Kogi State 414MW
Hudson Power Ltd Generation On-Grid Warawa, Ogun State 150MW
Ibadan Electricity Distribution Co.
Plc Distribution
Capital Building, 115 Ring
Road, Ibadan, Oyo State
Oyo, Ogun,
Osun and
Kwara
Ibafo Power Station Ltd Generation On-Grid Ibafo, Ogun State 200MW

6. Ibom Power Ltd Generation On-Grid
Ikot Abasi, Akwa Ibom
State 190MW
ICS Power Ltd Generation On-Grid Alaoji, Abia State 624MW
Ikeja Electricity Distribution
Company Distribution Ikeja, Lagos State Lagos North
Ikorodu Industrial Power Ltd
Distribution for
Ewekoro Cement Ikorodu, Lagos State
Ikorodu Industrial Power Ltd
Embedded
Generation Ikorodu, Lagos State 39MW
Ilupeju Power Ltd Generation Off-Grid Academy Press, Ilupeju 2MW
Income Electrix Ltd Generation Off-Grid NPA, PH, Rivers State 6MW
Island Power Ltd
Embedded
Generation Marina, Lagos State 10MW
Isolo Power Generation Ltd Generation On-Grid Isolo, Lagos State 20MW
JBS Wind Power Ltd Generation On-Grid
Maranban Pushit, Mangu,
Plateau State 100MW
Jos Electricity Distribution
Company Distribution
Ahmadu Bello Way, Jos,
Plateau State
Plateau,
Bauchi, Benue,
Gombe
Kaduna Electricity Distribution Co
Plc Distribution
Nagwamatse Building,
Ahmadu Bello Way,
Kaduna
B/Kebbi, Doka,
Gusau, Mak
Kaduna Power Supply Company
Ltd
Embedded
Generation
Kudenda Industrial Area,
Kaduna 84MW
Kainji Hydro Electric Plc (Jebba
Station) Generation On-Grid Jebba, Niger State 570MW
Kainji Hydro Electric Plc (Kainji
Station) Generation On-Grid Kainji, Niger State 760MW
Kano Electricity Distribution Co. Plc Distribution
Niger Street, Kano, Kano
State
Kano, Jigawa
and Katsina
Knox J&L Energy Solutions Ltd Generation On-Grid Ajaokuta, Kogi State 1000MW
Lotus and Bresson Nigeria Ltd Generation On-Grid Magboro, Ogun State 60MW
Mabon Ltd Generation Dadinkowa, Gombe State 39MW
MBH Power Ltd Generation On-Grid Ikorodu, Lagos State 300MW

7. Minaj Holduing Ltd Generation On-Grid
Agu-Amorji Nike, Enugu
East LGA, Enugu State 115MW
Nigerian Agip Oil Co. Ltd Generation On-Grid Okpai, Delta State 480MW
Nigerian Bulk Electricity Trading
Plc
Bulk Procurement
and Resale of
Electricity
Nigeria Electricity Supply
Corporation (Nigeria) Ltd (NESCO) Generation On-Grid Bukuru, Plateau State 30MW
Notore Power Ltd Generation On-Grid Onne, Rivers State 50MW
Ogorode Generation Co. Ltd (NIPP) Generation On-Grid Ogorode, Delta State 450MW
Olorunsogo Generation Co. Ltd
(NIPP) Generation On-Grid Olorunsogo, Ogun State 750MW
Olorunsogo Power Plc (BPE) Generation On-Grid Olorunsogo, Ogun State 335MW
Omoku Generation Company Ltd Generation On-Grid Omoku, Rivers State 250Mw
Omotosho Generation Company
Ltd Generation On-Grid Omotosho II, Ondo State 500MW
Omotosho Power Plc (NIPP) Generation On-Grid Omotosho, Ogun State 335MW
Paras Energy and Natural
Resources Ltd Generation On-Grid Ogijo, Ogun State 96MW
PH Electricity Distribution Co. Plc Distribution
Rumuigbo, Port Harcourt,
Rivers State
Rivers, Cross
River, Bayelsa
and Akwa
Ibom
PZ Power Company Ltd Generation Off-Grid
PZ Cussons Aba Factory,
Abia State 4MW
Sapele Power Plc Generation On-Grid Sapele, Delta State 1020MW
Shell Petroleum Dev. Co. Ltd Generation On-Grid Afam VI 642MW
Shiroro Hydro Electric Plc Generation On-Grid Shiroro, Niger State 600MW
Shoreline Power Company Ltd Generation Off-Grid
Lafarge WAPCO, Sagamu,
Ogun State 9MW
Supertek Electric Ltd Generation On-Grid Ajaokuta, Kogi State 500MW
Supertek Nig. Ltd Generation On-Grid Akwete, Abia State 1000MW
Tower Power Abeokuta Ltd Generation Off-Grid Abeokuta, Ogun State 20MW

8. Tower Power Utility Ltd Generation Off-Grid
Ota Industrial Estate, Ota,
Ogun State 20MW
Transmission Company of Nigeria Transmission
Zambesi Street, Maitama
–Abuja
36 States of
the Federation
Ughelli Power Plc Generation On-Grid Ughelli, Delta State 942MW
Unipower Agbara Ltd Generation Off-Grid
Unilever, Agbara, Ogun
State 6MW
Wedotebary Nigeria Ltd Generation Off-Grid Kuru, Jos 5MW
Westcorn Technologies and Energy
Services Ltd Generation On-Grid Sagamu, Ogun State 1000MW
Yola Electricity Distribution
Company Distribution
No. 2 Atiku Abubakar
Road, Jimeta, Yola State
Adamawa,
Borno, Taraba
and Yobe
Zuma Energy Nigeria Ltd (Gas
Plant) Generation On-Grid
Ohaji Egbema, Owerri,
Imo 400MW
Zuma Energy Nigeria Ltd (Coal
Plant) Generation On-Grid Itobe, Kogi State 1200MW
Source: NERC [Available at http://www.nercng.org/index.php/industry-operators/licensing-
procedures/licencees] Last accessed 00:56 hours on 14th December, 2015.
Consumers
I would like to say more on this because it is where you, I and every other person who depends on electricity
to do one thing or the other belong. But most times, people do not seem to regard consumers as part of the
energy supply chain. Yes, they know about the big power plants, the transmission networks and the DISCOs
but they think less of electricity consumers. Without consumers, power generated would be useless, totally
useless and a waste of money, time and energy. Yes, remember I said earlier on that the process of electricity
generation is merely a conversion from one form of energy to another starting from the chemical energy of
the fuel or the potential energy of falling water (in the case of hydro plants). Since electricity cannot be
stored in bulk quantity (please forget about your batteries and capacitor banks!), there is need that it be
used up as soon as it is produced. In Nigeria, there are various categories of electricity consumers. We have
the residential, commercial and industrial customers for instance. These all get metered supply of electricity
from the DISCO in charge of their locality at stipulated tariff which varies according to location and category
of customer. A major problem for most DISCOs however, is energy theft – a situation where a consumer
connects illegally to a distribution network, gets supply of electricity without being billed for it. Customers

9. on the other hand complain of estimated billings from DISCOs. A solution to these problems is the installation
of Advanced Metering Infrastructure (AMI) and prepaid meters which some DISCOs are already carrying out.
Nigeria Electricity Liability Management Company (NELMCO)
NELMCO was incorporated in August 2006 as a company limited by guarantee under the Companies and
Allied Matters Act, 1999. Amongst other objectives, the company has the following as its core mandate: to
assume and administer the stranded liabilities of PHCN pursuant to the provisions of EPSR Act, 2005; to
assume and manage pension liabilities of employees of PHCN; to hold the non-core assets of PHCN, sell or
dispose or deal in any manner for the purpose of financing the repayment of the pension liabilities of
employees of PHCN; to take over the management and settlement of PHCN’s Power Purchase Agreement
obligations and other legacy debts as may be determined by the National Council on Privatization within the
Nigeria Electricity Supply Industry; to manage and supervise the management of contractual arrangements
arising from the assumption of stranded liabilities of PHCN; and to undertake the business of electricity as
trading licensee, furthermore being involved in bulk purchase of power. [Source: iwi. Available at
http://iwin.org.ng/index.php/2014-10-11-16-33-00/ministry-of-power/item/684-nigeria-electricity-
management-ltd-gte-nelmco, Last Accessed December 12, 2015]
Nigeria Bulk Electricity Trading Plc (NBET)
NBET enters into Power Purchase Agreement (PPA) with generation companies through which it buys bulk
electricity and resells to distribution companies through Vesting Contracts. To fulfil its mandate and drive
investment into Nigeria’s power sector, NBET is positioned as a credit worthy counterpart for current and
future generation projects.
Nigerian Electricity Regulatory Commission (NERC)
Perhaps the most powerful of all the aforementioned key players, NERC is an independent body established
by the Electric Power Sector Reform Act of 2005 to undertake technical and economic regulation of the
Nigerian Electricity Supply Industry. The Commission is to among others license operators, determine codes
and standards, establish customer rights and obligations and set cost reflective industry tariffs. That is to say
that NERC’s responsibility is to regulate standards of performance for all electricity licensees and monitor
performance to ensure that these standards are maintained or even exceeded. The Commission is also
involved in dispute resolution, rule-making and protection of public interest (especially the rights of
customers) and in turn collects 1.5% of market revenue as regulatory charge.
Federal Government of Nigeria (FGN)
The power sector is a highly regulated industry compared to other industries. The Federal Government plays
a vital role in maintaining industry standards through NERC. But besides being the industry regulator, like

10. earlier said, the transmission of electricity in Nigeria is still under government purview. In addition, the
Federal Government holds shares in all the privatized GENCOs and DISCOs. The newly built gas power
stations under the National Integrated Power Project which are yet to be privatized are also owned by
Government.
In conclusion, the business of providing electricity for national development is a tedious one owing to the
many challenges surrounding the power industry. Usually, it involves concerted efforts of all stakeholders to
ensure quality delivery and customer satisfaction. In this article, we tried to look at the key players in the
Nigerian Electricity Supply Industry and the roles they play in the generation, transmission and distribution
of electricity. We saw how the Federal Government through its various agencies plays a regulatory role in
setting industry standards and rating performance. We also saw how the energy chain would be incomplete
and indeed useless without consumers of electricity. In subsequent articles, we will take an in-depth look at
the activities of various stakeholders in the industry, the challenges they face and possible solutions in
moving the power industry steps forward.