Only five states in Nigeria can build over 100 km of transmission lines. This is according to a recent report by the Energy Market and Rates Consultants (EMRC), published on July 27, 2023.

According to the report, $1.58 billion (N750 to a dollar), which was 63% of the entire internally generated revenue (IGR) by states in 2021, was generated by only five states;

Lagos
Rivers
Ogun
Delta
Federal Capital Territory (FCT), Abuja.
The report stated further that while there is now a constitutional amendment allowing states to participate in the electricity sector, transmission is a very expensive aspect of the value chain and only the highlighted states can afford to build over 100 km of electricity transmission lines.

Cost implication
The EMRC report cited a document published by Grid North Partners which stated that the cost of building an overhead transmission line is $1.5 million to $2 million per mile, which brings the cost to

$931,677 (using $1.5 million) per kilometre.

A part of the EMRC report stated:

“This means that using the average price against a total overhead transmission line of 17,740 km, the estimated cost of the Nigerian transmission infrastructure in today’s value is $16.5 billion for the network lines alone. This estimated cost of $16.5 billion does not include the cost of substations, circuits, control centres, work centres, or financing costs.
“If all the states in Nigeria spend their total revenue generated on building transmission lines alone, they will only be able to build 2,748 km of transmission lines, which is 15% of the current length of transmission lines in Nigeria.
“Also, it is important to note that states cannot spend their total IGR on just one sector as multiple factors contribute to the welfare of states like health care, education, etc.”

Recommendation
Following the empowerment of states to generate, distribute and transmit their electricity based on the passage of the 2023 Electricity Act by President Bola Ahmed Tinubu, the EMRC advised states that it is in their best interests, to collaborate with the Transmission Company of Nigeria (TCN) on transmission-related matters within their states or consider public-private partnerships for financing transmission within the state.

What you should know:
During the July 22 webinar on the 2023 Electricity Act by Nairametrics, Management, and Strategic Leadership expert, Biodun Ogunleye, said that some states may not have the ability to effectively generate, transmit and distribute electricity, so there is a possibility that the country may end up with over 20 new electricity markets, as opposed to 37.

tete7000:


So Delta and Rivers are SW states? Abuja too?

ehikwe22:

Why are you guys like this? Is my Delta and Rivers also in SW?

ukehi:
Still a hard nut to crack that a country as rich as Nigeria is is battling with electricity in 21st century

FreeStuffsNG:
Please tell me which nation in the world is not battling with electricity in the world. Smh.

Just like most nations, we are not battling with electricity in the whole spectrum. UK for months now has had most electricity companies folding up and returning their licenses to their regulator Ofgen.Try and read to understand and not be too quick in lamenting.

For years now, we produce more electricity than we need by the time you add all forms of energy we generate and use in all electricity
generators nationwide but electricity is more than generation.

We produce even more electricity than we need but some zones are not investing in such critical sector and for that reason the electricity transmission and distribution is not efficient.

jmoore:
5,000
megawatts is more than what 200 million people need?
Egypt generates 59,000
megawatts, self-sufficient and exporting the excess.

FreeStuffsNG:
Please tell me which nation in the world is not battling with electricity in the world. Smh.

Just like most nations, we are not battling with electricity in the whole spectrum. UK for months now has had most electricity companies folding up and returning their licenses to their regulator Ofgen.Try and read to understand and not be too quick in lamenting.

For years now, we produce more electricity than we need by the time you add all forms of energy we generate and use in all electricity
generators nationwide but electricity is more than generation.

We produce even more electricity than we need but some zones are not investing in such critical sector and for that reason the electricity transmission and distribution is not efficient. Imagine if Anambra had invested the money Mr Obi sank in a beer-making International Breweries plc to prepare ahead for this kind of opportunity.

Just to enact laws for state electricity market, it is just a handful of 3 states ,Kaduna,Edo and Lagos, have state framework for their electricity market yet state legislators of most states can do the job. That's why it's not just to lament and go. Understand the issues and suggest if you have anything to offer.