Energy Demand In Nigeria Case Study

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CHAPTER ONE INTRODUCTION 1.1 Background to the Study Electricity which is one of the most versatile form of energy, plays a very important role in the socio-economic and technological development of every nation. The electrical energy demand globally is on the rise as a result of the steady growth in the world population, characterized by the activities of humans and high level of industrialization. Some of the key parameters to measure a country’s industrial growth are availability, reliability and affordability of electricity because the running of modern industrial structure depends on low tariff and uninterrupted power supply. Any nation whose energy supply is epileptic, prolongs her development and risks losing potential investors (Okoro and Chikuni, 2007). The electricity demand in Nigeria far outstrips the supply. The country is faced with acute electricity problems, which is hindering its development notwithstanding the availability of vast natural resources in the country. It is widely accepted that there is a strong correlation between socio-economic development and the availability of electricity (Orukpe and Agbontaen, 2013).…show more content…
As a monopoly, only the Federal Government could own electricity generation, transmission and distribution facilities, with all the profound problems inherent in this type of arrangement. The over-centralization made it difficult for electricity development to keep pace with increased national economic activity and the population growing at an average of 2.7% annually (Salau, 2011). Today, Nigeria has the biggest gap in the world between electricity demand and supply, providing its population of over 150 million with roughly 3,800 megawatts of electricity (Salau, 2011). In contrast, South Africa generates more than 40,000 megawatts for a population of 47 million, while Brazil generates 100,000 megawatts for its 201 million (Adinuba,

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