From the time of the Nigerian Electric Power Industry (NEPI’s) privatization exercise in 2013 till date, the Industry has remained constrained by insufficient revenues, weak cash flows, high leverage and low liquidity due largely to unreflective tariffs and low generating capacity. Unreflective tariffs impede the ability of the Industry operators to generate sufficient cash flows. In addition, the tariff shortfall continues to heighten liquidity challenges in NEPI.
As a result, the Nigerian Electricity Regulatory Commission (NERC) has introduced several policies to curb some of these fundamental limitations such as the Meter Asset Provider (MAP) regulation which is a means to liberalise the distribution market while resolving the challenges surrounding estimated billing and collections. However, while NEPI’s end consumer rate is growing at an average rate of 75,000 new customers every month, metering penetration has decreased from about 45.3% in January 2017 down to 40.6% in December 2019.
This Report is broadly divided into eight sections and has 75 pages and examines the following:
Agusto & Co’s 2020 Electric Power Industry Report provides: