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Lagos is more important than any state in Nigeria. Lagos should have 24 hours electricity before any other state in Nigeria.

Why? Because Lagos uses the most electricity, Lagos needs the most electricity, Lagos is the state with the truest economy. Other states have subsistence farming or Oil/Gas or this or that. I am not saying that they don't have an economy, but no state has an economy that requires stable electricity as much as Lagos Does.

If you have to prioritize who gets stable electricity first, I would say it should be Lagos. Not even Abuja, because the government doesn't do any work anyway. If the Federal Government was smart, they would ensure that the critical states have stable electricity first.

There is no point giving Lagos the same hours as Borno State or Taraba State. Every part of the country should have stable electricity, but Lagos should b first. Because Lagos can even take care of the rest of the country, it it gets into gear.

Look at places like Singapore......trust me...Lagos can be donating money to the rest of the country, if they get into gear, so other states should not act like they are Lagos's age mate. Lagos that has 60% of your non oil economy, Lagos that uses what ....50% of your energy?...I don't know the numbers right now, but you know what I mean. Lagos that receives how much of your incoming cargo?...these numbers are just endless!

Lagos can be donating money to other parts of the country. Lagos can even have an economy bigger than the whole of West Africa, if you give them the opportunity. Lagos will put food on your table! Lagos will put your children through school. There is no point Yobe pretending that they know what they are doing, or Niger State or Ebonyi State or Osun State. Give the power to Lagos and they will clothe you and nurture you.
To cut a long story short, I don't subscribe to your argument at all. We should be encouraging other centres of commerce and not focus on Lagos at the expense of other places. That to me is just plain SILLY. Lagos is already overpopulated and the infrastructure is not matching with the growth required for it to be a truly global city. We need to move away from this frankly speaking, ARCHAIC mentality. Nigeria is populous enough and has enough potential to support OTHER centres of commerce and trade outside Lagos.

I don't know what you would want to tell the citizens of states who have used their money to build their own power plants when you decide to divert that power to make sure Lagos gets 24 hours power. It is a silly argument to me and a culture we should be moving away from. States need to become more independent and empowered to chart their own course.
 

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I never said that other centres should not grow commerce...I do not believe in that idea. I could care less if Uyo is bigger than Lagos economically or Kaduna. It makes no difference.

but right now, I do believe that Lagos is the most developed state in Nigeria and the most in need of stable electricity.

in the interim.

Obviously...how can you expect other states to grow, if they also do not have stable electricity. All I am saying, is let us guarantee electricity in our most important economic centre. That is all I am saying.

If Tomorrow Abakiliki is our most important centre then fine, but right now - electricity is more critical for the operation of Lagos State than any other state.

If somebody told America, you can only have stable electricity in three states, will they not scratch their heads and choose states like Texas, New York, California etc?

All I am saying is that Lagos is a priority State right now, I am not saying that tomorrow that other states cannot or should not be more important.
 

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Can someone confirm a total capacity of almost 9000MW this month? Im sceptical that that has been reached tbh.
I don't know what's going on..but if you visit the website, you can see that all the projects (NIPP) appear to be completed. They were already 90-95% complete last year...so now that it is April 2013 I am guessing they are all complete.

This is what I have been telling you that even if it is only "Installed Capacity"...Nigeria has a whole lot more than 4000 MW floating around.

Go to this website http://www.nipptransactions.com/

and click NDPHC Companies (There are 10 companies, 10 power stations) and they all appear complete.

Of course these are not the only projects in Nigeria right now, there are other IPPs as stated in the table.

I don't see how Nigeria won't have at least 6000 MW by year end (And that is a very pessimistic prediction)
 

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It seems at least 5 of the 10 NIPPs are capable of producing electricity right now, but they still experience gas shortages, for example Geregu.

I think in light of the gas problems, some think the NIPPs will only contribute 2500 MW by the end of 2013. About 50% of what they could have produced, if all units were operational and fed with gas.

All of the NIPPs are gas fueled.
 

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Except I really believe it is. Foreign investors in the US are not allowed to own more than 50% of the company shares or something of that nature. Richard Branson had to partner with US companies to set up his businesses in The States due to this issue I believe. There might be a slim chance I am mistaken but I am SURE I have come across this before somewhere.
That applies primarily to defense companies (perhaps it extends to airlines as well), but certainly not to power or utility companies. And unlike the Nigerian "oga", those US investors would actually contribute capital and/or technology.
 

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That won't happen. You seem to forget we operate a functional democracy in Nigeria, with states like Lagos the battle ground for powerful political parties who have no intention of losing their hold on the state by enthroning corrupt, inept administrations that will surely get kicked out of power by the electorate.
Is that why the NIPP projects that were steaming towards completion (with Opkai, Omotosho and Geregu already completed) when Mr. Obasanjo left office are still uncompleted today?

I'll like to share your optimism, but as someone who actually lives in Nigeria at best Nigeria presently have a system of civilian govt rather than a "functional democracy" (of course, democracies by their very nature are imperfect systems), with extremely WEAK public (including accountability) institutions and one-person executives (sadly, the stereotypical 'oga'). I would not be surprised if a new LASG Governor spends much of his first term in office "probing" Mr. Fashola's administration and methodically dismantling (or mothballing) his projects.
 

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That cannot happen ^^ Maybe in other states, but not in Lagos.

Lagos is like a Crime Family. I am willing to bet that the next Lagos Governor will be in the circles of Fashola. Trust me. Lagos is a Crime Family.

if ACN or APC retain Lagos, there is no chance that anything will be probed or reversed. It is only if PDP win, that such will happen. I am willing to put my money on that.

And if you know anything about Crime families, you will know that they can last for decades!
 

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Sapele is going to a Chinese-Nigeria consortium.

It suffers the same ills that I previously alluded to that ALL of Nigeria's (pre-NIPP) power plants suffer. It requires modernization, and an expansion/upgrade of the existing distribution and transmission systems to successfully evacuate-distribute the generated power. As I previously noted to Monnblue, this is going to be a PROCESS and not an event. No govt (or anyone else for that matter) is going to turn on a switch tomorrow and adequately power Nigeria. Thankfully though that PROCESS finally seems to have started in real earnest.
 

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That cannot happen ^^ Maybe in other states, but not in Lagos.
I have lived here long enough to learn that ANYTHING can happen in Nigeria -- ANYTHING (and even in Lagos)!

You would be naive to rule out the PROBABILITY that even within his own party that Mr. Fashola has made real enemies (just like most reformers are apt to), at one point reportedly with his own mentor.
 

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Well if he has made enemies, does that then translate into a destruction of the party?

Anyway I think that many of Fashola's projects have been completed anyway. I think his place in history is already cemented. He is already ahead of Jakande.

The biggest damage they can do is stall the Commuter Rail (Blue/Red Line).

Also I would like to add that the people at the highest positions of the party have spoken very highly of Fashola! If he has enemies, I doubt they are in positions more powerful than him. The most important people in the party and even outside the party in other parties that now form APC understand that he is important.

Also I would also like to add that, I am not so sure that the ACN party is a Fashola Run show anyway. I followed Lagos projects before Fashola and I can tell you that even Tinubu should rank in the top list of all time Lagosian Governors! Maybe it is Fashola, Jakande then Tinubu or Fashola, Tinubu then Jakande. Anyway, even if he has enemies, I am not so sure that ACN is a one man or two man party. I am sure there are many other capable guys in that party.

All in All, I am still every confident in ACN.
 

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TLagos is like a Crime Family. I am willing to bet that the next Lagos Governor will be in the circles of Fashola. Trust me. Lagos is a Crime Family.
Btw, a sitting governor anointing (all but appointing) a successor governor in Nigeria who then turns around and stabs him in the gullet is about as old as prostitution (Enugu State is one of several poignant examples).
 

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BTW Jakande's son is also in the Lagos State ACN, a very well disciplined chap.

Imagine someone like him taking over.
 

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Btw, I agree that Lagos is the most important center in Nigeria. But that is precisely why electricity distribution should NOT be in the hands of the state govt (or any govt for that matter). On every measurable level, even as well (or relatively so) as the Fashola govt has performed, the private sector still outstrips its LASG counterpart by spades -- in education, healthcare, housing, hospitality, technology, human resources, etc. In power sector, the private sector (e.g., Oando Power) would most probably do about the same in Lagos.
 

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Alison-Madueke, who spoke at the opening of the Nigerian Economic Summit Group Roundtable discussion recently held in Abuja, said, "It will interest you to know that gas supply has grown at a most unprecedented rate of about 20 per cent per annum, effectively reaching a new peak of about 1500mmcf/d from less than 500mmcf/d a few years ago."

Alison-Maduke was represented by the Group Executive Director, Gas and Power, NNPC, Dr. David Ige.

She said over the last three years, the gas sector had experienced aggressive reforms culminating in the major gas addition to the domestic market.

According to the minister, the current demand by the National Integrated Power Project is put at about 260mmcf/d in the western area and it is expected to grow to about 340mmcf/d by the year end.
Source
 

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Reuters

Nigeria is privatising defunct state electricity firm

* President likely to miss ambitious generation targets

* Gas supply, funding, unions pose immediate risk

* Investor optimistic that slow progress is being made

ABUJA, May 1 (Reuters) - In an unwanted daily routine lasting 17 years, Phillip Cleatus sits in the dark doorway of his shoe-making shop in Nigeria's northern city of Kaduna, waiting for the lights to come back on.

President Goodluck Jonathan is trying to persuade Cleatus and some 170 million other Nigerians that will soon change.

Yet while his plan to privatise power is creeping forward, it is likely to take decades to end the chronic electricity shortages that are among the main barriers to investment and growth in Africa's second biggest economy and top oil producer.

Nigeria is in the process of breaking up the defunct state power company into 17 private generation and distribution companies and selling them for about $2.5 billion in total, as part of efforts to increase electricity output tenfold over the next seven years.

It might be its most advanced effort yet to end its perennial power shortfall, but progress has been so slow that Jonathan's targets look far too optimistic. Industry experts believe some improvements will be felt in 2-3 years.

If Nigeria gets the lights working it would reduce business costs by up to 40 percent, add 3 percent to GDP and cut the mass unemployment that fuels unrest seen in oil theft in the south and a bloody Islamist insurgency in the north, economists say.

It could also spur a boom in labour intensive areas like manufacturing, food processing, textiles and pharmaceuticals, while opening up the opportunity for new low-cost service industries like the call centres that aided India's rise.

The $13 billion a year that Nigerians spend on diesel, most of which is imported, would be a bill of the past. Power from generators costs more than twice as much as from the grid.

"This is killing my business, I lose 45 percent of my annual profit to poor power supply," Cleatus, 38, told Reuters.

GENERATORS

A glitzy ceremony hosted by Jonathan last week celebrated the first payment by private companies which are taking over the unbundled state electricity firm and a deal by the World Bank to give an initial $145 million risk guarantee for gas supply.

A close look at the private companies which won bids shows a mix of oligarchs and influential figures connected to Nigeria's political elite, and some recognised technical partners like Siemens and Manila Electric.

This has raised some questions about the expected efficiency of the privatisation process and what it can deliver, but there are those who argue that effective business in Nigeria is impossible without political connections and patrons.

"Much has been achieved, yet the race will not be over until Nigerians can take electricity supply for granted," Jonathan told dignitaries and power companies last week at his villa.

Electricity capacity had been in steady decline for a decade when Jonathan launched his reform plan in 2010, pledging Nigeria would boost generation from 3,000 megawatts (MW) to 10,000 MW by the end of this year, and 40,000 MW by 2020.

Generation has increased to around 4,000 MW but experts say there is zero hope of meeting government targets, while the scale of the task means power output will initially fall after the privatisation is completed at the end of this year.

Despite being Africa's top oil producer and holding the world's ninth largest gas reserves, Nigeria's power output is a tenth of South Africa's for a population three times the size.

"It will probably take Nigeria another 50 years before it attains the same level of electricity consumption per capita as South Africa currently enjoys today," said David Ladipo, whose company Azura is spending $700 million to build a 450 MW plant.

Ladipo thinks electricity output could grow to 6,000 MW in the next two years and to 9,000 MW by 2020, before seeing a potential boom as post-privatisation investment kicks in.

One industry expert told Reuters Nigeria's potential demand is estimated to be as high as 140,000 MW and rising, so just keeping up with demand will be a huge challenge.

THE TURNAROUND?

Even Ladipo's more modest projections, which several other industry experts broadly agreed with, face hurdles.

Privatisation is months behind schedule and government is struggling to get the funding it needs for crucial transmission and gas supply infrastructure. Powerful labour unions are blocking attempts to pay off 40,000 state electricity workers.

Nigeria says it has found 340 billion naira ($2.1 billion) to pay off the workers, but they remain reluctant to leave.

The African Development Bank is providing $150 million to aid with transmission and some of a $1 billion debut Eurobond would help with upgrades. But in Nigeria, just making the money available doesn't always mean it will be used wisely.

Some $40 billion has gone into several power reform drives in the last 20 years, industry experts say, much of it wasted.

"In the past the problem has not been capacity of government to find money for the power sector: billions have been allocated - and billions have been squandered or stolen," said Antony Goldman, head of Africa-focused PM Consulting.

Still, there remains optimism that wrestling power out of government hands will eventually lead to progress.

"Given the scale of the challenge and the history of the sector ... reform is progressing very well," said Fola Fabule, a Lagos-based investment banker focused on infrastructure finance.

"The key... will be commitment to see reforms through."

(Additional reporting by Isaac Abrak in Kaduna; editing by Tim Cocks and James Jukwey)
 

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The other side of the gas supply issue:
Represented at the event by the NNPC’s Group Executive Director, Gas and Power, David Ige, Alison-Madueke also stated that gas supply payment performance has been a major dis-incentive to supply growth in the sector.
“One key dis-incentive to supply growth is the payment performance of the power sector broadly, whilst NIPP has had a relatively better performance in terms of paying for gas, the power sector still owes about N22 billion for gas supplied.
For sustained growth in supply, there is need for improved payment performance,” she said.
http://sweetcrudereports.com/2013/04/30/power-sector-owing-nnpc-n22bn-for-gas-alison-madueke/
 
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