OVERVIEW OF NIGERIAN ELECTRIC POWER SECTOR

The reform of the power sector industry arose from the need to introduce private sector participation in the industry to enhance operational efficiency, attract new investment and offer better service delivery that unlocks the massive entrepreneurial and industrial potential that has remained constrained for decades by the inability to provide clean electricity at steady voltages across the country. In November 2005, in accordance with the reform measures mandated by the Electric Power Sector Reform Act, 2005, PHCN was unbundled into eighteen new successor companies (six generation companies, one transmission company and eleven distribution/marketing entities. All the successor companies have been incorporated under the Companies and Allied Matters Act as independent limited liability companies.

GENERATION COMPANIES
SHIRORO HYDRO POWER PLC
Shiroro, Niger state, Nigeria Shiroro Power Plant has an installed capacity of 600 MW and was commissioned in 1990. The Stations annual energy generation in the year 2009 was 2,282.1 GWh but currently delivers 450MW to the National grid from three of the four units. Unit 411G2 is undergoing comprehensive repairs/overhaul. As Nigerias newest hydroelectric plant, Shiroro hosts Nigerias SCADA-operated national control centre. Shiroro is also equipped with switchyard facilities that include a technical step down function for enhanced distribution into the national grid, an advanced control room and modern training facilities. The plant is situated at the Shiroro Gorge on the Kaduna River, approximately 60 km from Minna, capital of Niger State, and in close proximity to Abuja, Nigerias federal capital, for which it is the primary source of electricity.

KAINJI/JEBBA HYDRO POWER PLC

Kainji, Niger State, Nigeria

Kainji/Jebba Power operates as two hydro generation plants, each drawing water from the River Niger. The combined installed capacity of the two plants is 1330 MW, 760 MW installed capacity for Kainji and 570MW for Jebba. Kainji currently delivers about 400MW while Jebba contributes 450MW from five (5) units with one down for major repairs. Kainji began operation as Nigerias first hydro power plant in 1968 while the Jebba plant was commissioned in 1985. Jebba is the smallest of the three operating hydro power plants in Nigeria. In addition to generation facilities, the hydro plants have on-site Medical facilities, a staff school, a recreation centre, and a training school.

UGHELLI POWER PLC

Ughelli Power Station Complex, Km 27 Effurun-Patani Road, Ughelli, Delta State Ughelli Power Plc operates a gas-fired thermal plant located in the Niger Delta region. Ughelli Power is one of the largest thermal generating power stations in Nigeria. The plant has an installed capacity of 972 MW, with a capacity to generate 2500 GWh of electricity annually. This plant currently delivers 550MW. It includes an updated control room and a switchgear room. Ughelli began operations in 1966.

SAPELE POWER PLC

Sapele, Delta State, Nigeria Sapele Power Plant is a thermal generating station located in Nigerias Gas rich Delta State. Sapele has an installed capacity of 1020 MW. Only two (2) of Sapele Powers six 120MW steam turbines are currently operating, producing about 200MW. Sapele Power is strategically located in the Niger Delta region, close to sources of both natural gas feedstock and a river for cooling its steam turbine generators. Sapele Power includes an control room, a switchgear room, a staff training school, and medical and recreational facilities. Sapele Power began operations in 1978.

AFAM POWER PLC

Afam, Rivers State, Nigeria Afam Power Station has an installed capacity of 776MW. The plant was commissioned in phases. During the Initial phase, the gas turbine units 1-4 were commissioned during the period 1962-63. During the second phase, gas turbine

units 5 to 12 were commissioned during the period 1976 to 1978. In the third phase, gas turbine units 13 to 18 were commissioned in 1982. Further, two gas turbine units were commissioned in 2001 during the final phase of the Afam Power Station extension. Currently none of the installed units are in service. There are plans to bring gas turbines 17 and 18 back into service by Dec, 2010. These units would contribute 127MW to the grid.

NON-OPERATING GENERATION ASSETS

CALABAR THERMAL POWER STATION
Marina, Calabar, Cross River State Calabar Power Station has an installed capacity of 6.6 MW derived from three units of 2.2 MW each. Calabar Power was built in 1934 and has not been operational for the last 10 years. Calabar Power divestiture will be by asset sale.

OJI RIVER POWER STATION

West Bank of Oji River, Achi, Enugu State, Nigeria Oji River Thermal Power Station was originally built to take advantage of plentiful nearby deposits of high-grade coal. Oji River Power generated 10 MW of power from five coal-fired boilers and four steam turbines originally installed in 1956. The plant was the only coal-fired steam power station in Nigeria but has not operated for at least 10 years. Water from the nearly Oji River is used to feed the steam turbines and also for cooling purposes. Oji River Power divestiture will be by asset sale.

IJORA THERMAL POWER STATION

Ijora, Lagos State Ijora Power Plant was commissioned in 1956 with coal-fired boilers which are no longer operational. The plant has a 132/33KV transmission station that is in good condition, but its 33/11KV transformers need replacement. Although the plant is currently non-operational, current demand for power, the availability of natural gas and the governments programme for gas utilisation give Ijora Power a competitive advantage. The location of the plant makes it ideal for an Independent Power Plant project. Ijora Thermal Power divestiture will be by asset sale.

DISTRIBUTION COMPANIES
There are eleven Distribution Companies, namely: Abuja Electricity Distribution Plc Benin Electricity Distribution Plc Eko Electricity Distribution Plc Enugu Electricity Distribution Plc Ibadan Electricity Distribution Plc Ikeja Electricity Distribution Plc Jos Electricity Distribution Plc Kaduna Electricity Distribution Plc Kano Electricity Distribution Plc Port-Harcourt Electricity Distribution Plc Yola Electricity Distribution Plc The above listed Distribution Companies comprising a national distribution grid. The grid, in turn, is managed by a separate company, the Transmission Company of Nigeria (TCN) PLC, from a national control center at Oshogbo, and a supplementary center at Shiroro. TCN is a subsidiary of the Power Holding Company of Nigeria (PHCN).

ABUJA ELECTRICITY DISTRIBUTION PLC

1, Ziguichor Street, Wuse Zone 4, Abuja Abuja Electricity Distribution PLC, or Abuja Disco, serves central Nigeria from its base in Abuja, Nigerias capital city in the Federal Capital Territory (FCT). Abuja Disco established in 1997 following the transfer of the capita from Lagos in1991. Abuja Disco has a franchise for distribution and marketing in a service zone comprising Minna, Suleja, Lokoja and Lafia Districts. Abuja Disco owns and maintains electrical installations and the distribution network within the zone, manages meter installations, servicing and billing, coordinates consumer credit services, and collects revenue. Abuja Disco has a peak load of 835 MW. As of December 31, 2009, Abuja Disco made up 13% of all collections in distribution. Its revenue ranked third among the 11 Discos for both sale and electricity purchased/ distributed. In 2009, Abuja Discos combined customer base, consisting primarily of residential and commercial users, ranked ninth among Nigerias Discos, according to a due diligence study conducted by independent consultants. The Shiroro Hydro Station, located approximately 245km from Abuja, is a major, seasonal supplier of Abuja Discos electricity over 330Kv lines. Despite past investment, the demand for electricity in the Abuja Disco service zone exceeds the supply. Increasing population and commercial activities continue to add to that demand. In 2005, Abuja Disco intensified collection efforts with installation of pre-payment meters, route sequencing, bulk, and feeder-by-feeder energy audits. As at 2008, Abuja Disco had a customer base of 469,306 customers.

BENIN ELECTRICITY DISTRIBUTION COMPANY PLC

5, Akpakpava Road, Benin City Benin Electricity Distribution PLC, Benin Disco, serves a primarily industrial customer base in Delta, Edo, Ondo, and Ekiti States, Nigerias industrial mid-West, a region dominated by oil and energy-related companies. The districts in the Disco include Ado-Ekiti, Afenmesan, Akure, Asaba, Akpakpava, Ugbowo, and Warri. Benin Disco maintains electrical infrastructure form its base in Benin City, Edo State, considered the South East regional gateway. Benin Disco owns and maintains electrical installations and servicing, billing, coordinates consumer credit services and collects revenue.

In 2005, Benin Disco intensified collection efforts with installation of pre-payment meters, route sequencing, bulk, and feeder-by-feeder energy audits. As a result, as of November 2005, most of the districts within the Disco recorded above 50% collection rate for the total energy billed for the period. In 2009, its collections made up 11% of the total for the industry. As at 2008, Benin Disco had a customer base of 529,341 customers. Currently, Benin Disco has a peak load of 1000MW.

EKO ELECTRICITY DISTRIBUTION PLC 13/ 25 Marina, Lagos State

Eko Electricity distribution PLC, Eko Disco, located in Lagos, serves Nigerias commercial and financial hub, and the Agbara industrial region. This base includes a class of customers who are ready to pay higher rates in exchange for reliable service and adequate supply so as to eliminate the time and expense of supplying supplemental power, long a problem in Nigeria. Eko Disco has a franchise for distribution for Festac, Ijora, Lagos Island, Ajah and Agbara/ Badagry districts of Lagos South. Eko Disco owns and maintains electrical installations and the distribution network, manages meter installations and servicing, billing, coordinates consumer credit services, and collects revenue from its base on Victoria Island, the very heart of the Lagos business district. In 2005, Eko Disco intensified collection efforts with installation of pre-payment meters, route sequencing, bulk, and feeder-by-feeder energy audits. In 2009, Eko Disco accounted for 13% of total collections. As at 2008, Eko Disco had a customer base of 266,075 customers. Currently it has a peak load of 1105MW

ENUGU ELECTRICITY DISTRIBUTION COMPANY PLC

Michael Okpara Avenue, Enugu, Enugu State Enugu Electricity Distribution PLC, or Enugu Disco, located in Nigerias South east zone, distributes and markets electricity in franchise area that includes Abia, Anambra, Ebonyi, Enugu and Imo States. The franchise area is further subdivided into 10 districts, namely, Aba, Abakaliki, Abakpa, Akwa, Ogui, Onitsha, Orlu,

Owerri, Nnewi, and Umuahia. The Aba and Onitsha districts are home to two of Nigerias major domestic commercial/ industrial centers. In 2005, Enugu Disco intensified collection efforts with installation of pre-payment meters, route sequencing, bulk, and feeder-by feeder energy audits, beginning with Aba and Onitsha business units. The new revenue generation capacity together with metering/ billing efficiencies have led to an average monthly increase of approximately 32percent. In 2009, Enugu Disco accounted for 10% of total collections. Enugu Discos user base includes a class of customers who are ready to pay higher rates in exchange for reliable service and adequate supply so as to eliminate the time and expense of supplying supplemental power, long a problem in Nigeria. As at 2008, Enugu Disco had a customer base of 545,103 customers and currently has a peak load of 1017MW.

IBADAN ELECTRICITY DISTRIBUTION PLC

Capital Building, Ring Road, Molete, Ibadan, Oyo State Ibadan Electricity Distribution PLC, or Ibadan Disco, located in South Western zone of Nigeria, has a franchise for distribution and marketing electrical service in parts of Ogun, Osun and Kwara States. The Ibadan Disco Zone, in turn, is subdivided into eight districts, namely, Abeokuta, Dugbe, Molete, Ijebu-Ode, Oshogbo and Ilorin, Sango-Ota and Oyo. The Ibadan Disco service area includes Sango-Ota Industrial estate, Oluyole industrial estate and the recently launched White Farmers Programme in Kwara State, all major industrial users of electricity. Within the zone, Ibadan Disco owns and maintains distribution network and supporting equipment, manages meter installations and servicing, billing, coordinates consumer credit services, and collects revenue. In 2009, its collections made up 14% of the total for the industry. In 2005, Ibadan Disco distributed 13% of Nigerias total electrical energy consumed. In the Ibadan Disco service area, demand continues to grow, driven largely by industries in Sango-Ota and Oyo States which together account for 805 of the total revenue generated. The consumers who are ready to pay higher rates in exchange for reliable service and adequate supply so as to eliminate the time and expense of supplying supplemental power, long a problem in Nigeria.

In 2005, Ibadan Disco intensified collection efforts with installation of pre-payment meters, route sequencing, bulk, and feeder-by-feeder energy audits. As a result, percentage of revenue collected to amount billed, increased across all districts. As at 2008, Ibadan Disco had a customer base of 812,000 customers. It currently has a peak demand of 1193MW

IKEJA ELECTRICITY DISTRIBUTION COMPANY PLC

Secretariat Road, Alausa, Ikeja, Lagos Ikeja Electricity Distribution PLC, or Ikeja Disco, located in Lagos has a franchise for distribution and marketing electrical service in the Ikeja zone which includes parts of Lagos State. The Ikeja Disco Zone, in turn, is subdivided into seven districts, namely, Ikeja, Shomolu, Alimosho, Ojodu, Ikorodu, Oshodi and Abule-Egba. Ikeja Disco service area includes Ikeja Industrial estate, but otherwise, has predominately residential consumers near Lagos, Nigerias leading commercial and financial center. Within the zone, IKeja Disco owns and maintains distribution network and supporting equipment, manages meter installations and servicing, billing, coordinates consumer credit services, and collects revenue. In the Ikeja Disco service area, demand continues to grow, driven largely by the Ikeja industrial estate and a class of consumers who are ready to pay higher rates in exchange for reliable service and adequate supply so as to eliminate the time and expense of supplying supplemental power, long a problem in Nigeria. In 2005, Ikeja Disco intensified collection efforts with installation of pre-payment meters, route sequencing, bulk, and feeder-by-feeder energy audits. As a result, percentage of revenue collected to amount billed, increased across all districts, from a low of 80% to a high of 87%. In 2009, its collections made up 17% of the total for the industry. As at 2008, Ikeja Disco had a customer base of 535,692 customers. It has a peak load of 1335MW.

JOS ELECTRICITY DISTRIBUTION COMPANY PLC

9, Ahmadu Bello way, Jos Plateau State, Nigeria Jos Electricity Distribution PLC, or Jos Disco, located in North Eastern part of Nigeria, serves a significant industrial customer base in Bauchi, Benue, Gombe, and Plateau States, as well as Saminaka in Kaduna State. The Jos Zone is, in turn, subdivided into four districts namely Jos, Bauchi, Gombe and Makurdi. The Jos Disco is the fourth largest distributor in Nigeria covering more than 610,000sq Km, with a population of more than 13 million. Jos Disco is the center of Nigerias mining industry and currently has a peak load of 507MW In the Jos Disco service area, demand continues to grow, driven largely by an industrial and a class of consumers who are ready to pay higher rates in exchange for reliable service and adequate supply so as to eliminate the time and expense of supplying supplemental power, long a problem in Nigeria. Jos Disco estimates revenues increasing by much as 80% in the next four-to-five years as a result of new distribution capacity combined with improved tariffs, new metering/ billing efficiencies, improved collections, and growing customer base. As at 2008, Jos Disco had a customer base of 277,626 customers. In 2009, Jos Disco accounted for 4% of total collections.

KADUNA

ELECTRICITY

DISTRIBUTION

PLC

Savannah Building, Ahmadu Bello Way, Kaduna Kaduna Electricity Distribution PLC, or Kaduna Disco, located in North Central region of Nigeria, has a franchise for distribution and marketing of electricity in the Kaduna Zone, which includes the Makera, Doka, Birnin Kebbi, Gusau, Sokoto, and Zaria Districts. The company owns and maintains the distribution network and support equipment within the zone, manages meter installation and servicing, billing, coordinates consumer credit services, and collects revenue. Kaduna Disco serves a predominately commercial economy, anchored by cities of Kaduna and Zaira with banks, hotels, corporate headquarters and offices of prominent commercial customers.

The Disco has a class of customers who are ready to pay higher rates in exchange for reliable service and adequate supply so as to eliminate the time and expense of supplying supplemental power, long a problem in Nigeria. The Discos customers include industrial, residential, and special tariff end users. In 2008, Kaduna Disco distributed 6.2% of Nigerias total electrical energy consumed. In the Kaduna Disco service area, demand continues to grow, driven largely by customers in Kaduna and Zaira. Its peak load is 520MW In 2005, all the districts recorded improved collections largely in response to improved metering/ billing efficiencies. With improved tariff, additional distribution capacity and improved collections, Kaduna Disco projects doubling revenue in the next four- five years. In 2009, Kaduna Disco accounted for 6% of total collections. As at 2008, Kaduna Disco had a customer base of 285,736 customers.

KANO

ELECTRICITY

DISTRIBUTION

COMPANY

PLC

1, Niger Street Kano, Nigeria Kano Electricity Distribution PLC, or Kano Disco, located in North Western zone of Nigeria, has a franchise for distribution and marketing of electricity in Kano, Katsina and Jigawa States, through seven districts, namely, Nasarawa, Dala, Katsina, Dutse, Kumbotso, Funtua, and Dakata. The company owns and maintains electrical installations and the distribution network within its franchise zone, manages meter installations and servicing, billing, coordinates consumer credit services, and collects revenue. In 2005, Kano Disco intensified collection efforts with installation of pre-payment meters, route sequencing, bulk, and feeder-by-feeder energy audits. Kano Discos projection indicates that revenues will double in four-to-five years as a result of new distribution capacity, improved tariffs, new metering/ billing efficiencies, improved collections, and a growing customer base. In 2009, Kaduna Disco accounted for 5% of total collections. As at 2008, Kano Disco had a customer base of 489,965 customers and currently has a peak load of 596MW

PORT-HARCOURT ELECTRICITY DISTRIBUTION COMPANY PLC

42, Obiwali road, Rumuigbo, Port-Harcourt, Nigeria Port-Harcourt Electricity Distribution PLC, or Port-Harcourt Disco, serves Bayelsa, Cross River, Rivers, Akwa-Ibom and parts of Delta States in Nigerias industrial South-South Zone, a region dominated by oil and energy-related companies. The Port-Harcourt Disco is, in turn, subdivided into six districts, namely, Calabar, Diobu, Ikom/ Ogoja, Borikiri, Uyo and Yenegoa. Port-Harcourt Disco owns and maintains the distribution network and supporting equipment, manages meter installations and servicing, billing, coordinates consumer credit services, and collects revenue. In 2005, Port-Harcourt Disco intensified collection efforts with installation of prepayment meters, route sequencing, bulk, and feeder-by-feeder energy audits. As a result, percentage of revenue collected to amount billed, increased across all districts. In 2009, its collections made up 5% of the total for the industry. In the Port-Harcourt Disco service area, demand continues to grow, driven largely by the industrial demand and a class of consumers who are ready to pay higher rates in exchange for reliable service and adequate supply so as to eliminate the time and expense of supplying supplemental power, long a problem in Nigeria. As at 2008, Port-Harcourt Disco had a customer base of 347,789 customers. Currently it has a peak load of 773MW.

YOLA

ELECTRICITY

DISTRIBUTION

PLC

Garden Office, Mohammed Mustapha Way, Jimeta, Adamawa State Yola Distribution PLC, or Yola Disco, is located in North Eastern part of Nigeria, near Yaound, Cameroon, and the Chad and Niger borders, dominated primarily by agricultural customers in Adamawa, Borno, Taraba, and Yobe States. The Yola Disco is subdivided into four districts, namely, Yola, Maiduguri, Taraba and Damaturu. In the Yola Disco service area, demand continues to grow, driven largely by industrial customers and a class of consumers who are ready to pay higher rates in exchange for reliable service and adequate supply so as to eliminate the time and expense of supplying supplemental power, long a problem in Nigeria.

In 2005, Yola Disco intensified collection effort with installation of pre-payment maters, route sequencing, bulk, and feeder-by feeder energy audits. As at 2008, Yola Disco had a customer base of 89,665 customers and currently has a peak load of 176MW. In 2009, its collections made up 2% of the total for the industry.