The Beginning
Electricity generation in Nigeria started as far back as the 18th century. The first electric utility company, known as the Nigerian Electricity Supply Company, was established sometime in the 19th century. By the 20th century, a state-owned monopoly, the National Electric Power Authority (NEPA), oversaw the generation, transmission and distribution of electric power in Nigeria.
Since then, Nigerians have experienced unstable and unreliable electric power supply. Customers are exposed to frequent power cuts and long period of power outages. This is largely due to lack of maintenance of power infrastructure, outdated power plants, low revenues, high losses, power theft and non-cost reflective tariffs.
The Progression
The government has worked hard at reforming the Power Sector and Electricity Supply Industry in general. The Electric Power Sector Reform (EPSR) Act was enacted. The Nigerian Electricity Regulatory Commission (NERC) was established as an independent regulatory body for the electricity industry in Nigeria. In addition, the Power Holding Company of Nigeria (PHCN) was formed as a transitional corporation. Subsequently, the Nigerian Bulk Electricity Trading Plc (NBET)was established as a credible off-taker of electric power from generation companies.
However, electricity is still a growing concern as it has a huge impact on the economy. Therefore, to meet the increasing electricity demands of the country, the Nigerian government, through the Electric Power Sector Reform (EPSR) Act has encouraged the privatization of the electricity supply industry.
And Now
Consequently, the ESPR Act grants license for generation, transmission, distribution and trading of electricity to private owners who have demonstrated their capacity to engage in the electricity business. This is a major step to solve the problem of electricity, enabling private investors to key into this by executing several independent power projects including gas-to-power projects. This is one of the many reasons LuxxorPower was established.
The Future
LuxxorPower is one of such companies with the express mandate of identifying and executing small to medium scale power development projects across West Africa with a principal focus on Nigeria. LuxxorPower is generally involved in gas-to-power generation across the country.