The eligible customer criteria declared by the Minister of Power is a clear business opportunity.

Generally speaking, it means qualified customers can get electricity directly from GenCos and other Suppliers. This brings a number of opportunities for investors and fund managers as enumerated below.

Opportunity for Independent Electricity Distribution Network Owners – IEDNOs.

A person or group of individuals can invest in a dedicated electricity network and supply power to housing estates, manufacturers, and heavy electricity consumers throughout Nigeria. This will be according to the Independent Electricity Distribution Network [IEDN] regulations set by the Nigerian Electricity Regulatory Commission (NERC).

With the development in the power sector, IEDNOs will spring up in the Nigerian Electricity Supply Industry [NESI] and that is a layer of business opportunity for consideration. With a dedicated and independent “wire business” (cables, overhead lines, transformers etc) built from the generator to the estate, say, pre-paidmeters can be installed in consumers’ premises so that rates/tariff are reasonably guaranteed. This should provide a good return on investment (ROI) – money to pay investors and declare profit which can be traded in local/international financial market, even on the floor of the Nigerian Stock Exchange (NSE)!!!

Opportunity for Electricity Suppliers

It is possible to source for finance and register with the Nigerian Electricity Regulatory Commission (NERC) as electricity suppliers, procure power and sell to estates, Industries, technology/energy parks etc.

The risk is lower because there is no requirement for large scale investment in network infrastructure. The opportunity is in looking for estates and reliable customers here and there to supply electricity based on contracts.

Requirements to be an electricity trader

1. Obtain and complete trading licence application form.

2. Company Registration, partnerships etc

3. Title deed to site

4. Tax clearance for last 3 years.

5. 10-year business plan.

6. Financing agreement or letter from financial institution(s).

7. Power Purchase Agreement (PPA) with Generators or other suppliers.

8. Network Agreement with TCN.

9. Retail agreement with the end user- customers (like the estates, heavy energy consumers, any DisCo etc)

A very good alternative to item 8 is to look for or invest in Independent Electricity Distribution Network owners.

Opportunity for consultancy

There will be alot of consultancy services required to make a success of the declaration of customer eligibility. There will be need for transaction experts and lawyers, aggregators, technocrats who can plan, manage, operate, control and maintain electricity networks. There will be opportunities for the provision of ancillary & metering services, including trainers for power and non-power systems related subjects that have bearing on the operation of a successful electricity market. Safety will be a more critical issue within NESI if deaths from electrocution have to be curtailed.

TCN & DisCo Bottlenecks- off-grid, microgrid solutions to the rescue

If the transmission network is weak and the distribution networks are begging for investment, the natural monopolies cannot lead us to the “promise land”. This a major risk in the value chain. Unless there is a third party guarantee for getting paid for what is pushed into the grid and or sold to customers, it will be difficult to sell business proposals to astute investors with the current level of inefficiency in the sector.

Fortunately, there is an existing framework for microgrid and independent electricity distribution network which makes it possible for electricity suppliers to connect directly to eligible customers. We now have many on-going off-grid solar projects and distributed generation in the North. We also have similar projects down south. Watch out for how Lagos State will move with the newly passed bill on revamping the electricity systems in the state. Expect other states in the South-West to follow!!!

Power Purchase Agreement (PPA) with GenCos and Independent Suppliers of electricity

GenCos (Generating Companies) are the generators of electricity that we have currently. They include companies like Transcorp Power, North-South Power, Egbin, Afam etc. They currently sell the electricity we use to the National grid owned and operated by the Transmission Company of Nigeria (TCN). Based on agreements/contracts with the Market Operator (MO) and the Nigerian Bulk Electricity Trader (NBET), they get paid from the collections made by DisCos from consumers. If they have to sell directly ro eligible customers according to laid down rules, a power purchase agreement/contract has to be in place.

Apart from these, there are independent power producers from whom eligible custmers will be able to buy electricity. Recently we have had Azura and Accugas. There are other IPPs and NIPP projects that will generate electricity.

Individuals can also generate and sell electricity themselves within the regulatory limits.

Summarily, people will do business, and therefore, have power purchase agreement with either:

1. The GenCos we have today or

2. Independent Power Producers.

It is important to mention that electricity can and will also be procured through existing distribution companies (DisCos). For example, bi-lateral agreements will be required between DisCos and other stakeholders for the operation and maintenance of distribution systems in their franchise areas in many cases for the forseeable future.

As an investor, it is best to be involved in the generation of electricity, its independent distribution and supply to metered customers to take full advantage of customer eligibility.

However, the easiest/cheapest model to start with is electricity trading.




Time: SATURDAY 7-8p.m Nigerian Time

Nowadays, it has become the norm to have people of like minds organize themselves into groups on different platforms.

Despite its limitation, WhatsApp remains one of the best platforms for such.

Sadly, it is sometimes difficult to keep the forum active as most fora have remained unsustainable due to the stress of daily life, inactive members and the cost of keeping up with barrages of unsolicited posts, videos and messages that are circulated round the globe, making most members to press the “mute” button.

Question time is an innovative programme I have come up with to educate and provide a learning platform on WhatsApp. With sponsorship, I will take it to the next level- On TV!

Main aims & objectives

This program is designed to assist a social media platform or forum in many ways including but not limited to:

a) Keeping the forum active during the week and more especially over the weekends.

b) Fostering friendship & camaraderie among members.

c) Learning and hopefully benefitting from the experiences of others with a view to improving the overall quality of life of members.


1. A guest to be interviewed (Hot Seat) preferred day(s) of the week.

2. Guest to confirm readiness and send the following to me via WhatsApp no later than close of business on Friday (Penultimate week).

– A brief background introductory information/autobiography.

– The list of preferred questions.

Answers provided must be true and verifiable.

3. Guest picture to be used as group profile picture for the week/weekend.

4. Fixed time and duration. For example, Saturday 7-8p.m.

5. No other posts by members during this program.

6. Member participation

During the program, members will be allowed to ask questions by sending them directly to me for review. I will subsequently post on the forum (referencing the author) so that the member on the Hot Seat can respond. Also, this can provoke further discussions.


Do you have a life of experience you like to share with others. Then contact me

Please let me know so I can include you in the schedule.

Will you like to partipate/ be my guest?

Engineer Idowu Oyebanjo MNSE CEng MIET, UK

+447985682587 ( WhatsApp only)



The world is indeed a global village where there is no barrier to trade, transportation, communication, media and information exchange via the internet of things as scientific and technological developments have revolutionised different aspects of life. Yet, there are inequalities and exploitation in this global village with the third world nations, comprising of majority of the world’s population, underdeveloped and backward. The fastest way to reduce these inequalities is to address the energy differential that exists in the global village. Some have opined that the drivers for such change must satisfy the social, technological, economic, environmental, and political (STEEP framework) criteria wherein there is continuous generation of energy from methods that do not rely on finite energy resources, are not under the political control of any one nation, ensure environmentally sound development, and meet economic and societal expectations.

In simple terms, energy poverty can be described as the propensity to become incapable of securing a socially and materially necessitated level of energy services in the home, office, or at work – services that satisfy needs which are at the core of human functionings. Such services include but are not limited to lighting, cooking, drying, refrigeration, working appliances, functional IT and communication systems, space and water heating, space cooling or air-conditioning, to mention but a few. While it must be stated ab-initio that the drivers for energy deprivation differs globally, all forms of energy and fuel poverty are underpinned by a common impact on long and short-term mental and physical health, inequality, gender discrimination, indoor air pollution, cold air exposure, deaths, gender discrimination, personal safety, household time budgets, labour productivity and income etc. More importantly, biological energy needs are universal and the benefits derivable from availability of energy services are the same everywhere you turn to worldwide. Some of the reasons behind energy poverty include low income and earning potential, high energy prices, poor energy efficiency, lack of access to energy due to absence of infrastructure to deliver same, policy marginalization, increasing demand or need for energy. Yet, energy service poverty is not static and does not necessarily affect demographically distinct groups of people or race. This presents the idea that once energy poor is not always energy poor. Thus, if effort is made to re-address the causes of energy deprivation, it is possible to avoid energy poverty.

To get to this point, a highlight of the broad range of systemic circumstances that lead to the emergence of domestic energy deprivation including institutional factors, political economies, infrastructural legacies, housing structures, income differentials, and changes to the needs and affordability of utility services has been given a worldwide consideration. Thus, there has been a change in the global understanding of the root cause of energy deprivation to include the politics of self-aggrandizement which leads to gross under-development and underconsumption of energy services. To this end and more recently, there has been a distributional and fiscal implications of state-led policies to address energy consumption, as well as the pathways through which increased access to modern fuels (non-traditional energy sources) contribute to livelihood improvement and human development in more general terms. This allows us to move from a supply-dominated logic underscoring the under-development of technical infrastructures to a more nuanced understanding of the multi-layered political economies and relations of power that drive the emergence and persistence of energy poverty. Although there has been an increased awareness of cultural and political determinants of household energy transitions towards the use of modern fuels in developing countries, what is been done worldwide to ameliorate energy poverty is tapping into the potential of micro-generation and renewable energy investment as an alternative to top-down power grid expansion. In simple terms, solar panels and micro wind generators on every roof top!!!

As stated earlier, if there is one common thread that connects both developed and developing world countries with respect to the underconsumption of energy in the home, it is the pivotal role of energy services. Energy services can be understood to mean the benefits that energy carriers produce for human wellbeing. This definition shifts the perspective away from fuels such as coal, oil, natural gas, uranium, sunlight, wind, along with the complex technologies such as hydrogen fuel cells, carbon capture and storage, advanced nuclear reactors, and superconducting transmission lines to name just a few onto the notion that people do not demand energy per se but energy services like mobility, washing, heating, cooking, cooling and lighting.

Focusing on energy services shifts attention from the primary energy resources onto achieving adequate levels of the stated benefits thus enabling policy goals to be directed to achieving adequate levels of lighting rather than delivering kWh of electricity, considering the role of demand-side management, the environmental impact of the use of energy, the utility and satisfaction received by end users, and the efficiency of energy carriers due to the multifunctional nature of energy services. All of these have the potential to focus on harnessing an hybrid assemblages of technological and social practices, institutional arrangements, shared cultural meanings and norms, knowledge and skills and material technologies and infrastructures as a common resource to combat domestic energy poverty.

The dynamic nature of energy service poverty makes the subject one of great interest to policy makers because it is easier to address energy vulnerability factors by exploring the drivers of deprivation of energy services – the so called socio-technical risks that can tip households into energy poverty, including but not limited to low income and earning potential, high energy prices, poor energy efficiency, lack of access to energy due to absence of infrastructure to deliver same, policy marginalization, increasing demand or need for energy, as already highlighted.

A potential result of this initiative will be the connection of power systems in Europe to the PV generation in North Africa in a world responding to a changing definition of energy as a yardstick for measuring poverty!



Thank you all for your readership You have read in one month many times more than you did in 2017! Please visit the Stats section

Dear reader,


Thank you all for your readership

You have read in one month many times more than you did in 2017!

Please visit the Stats section

Thank you all for your readership

You have read in one month many times more than you did in 2017!

Please visit the Stats section.


Engineer Idowu Oyebanjo, MNSE CEng MIET UK

MD Idfon Power Engineering Consultants (iPEC)





We are bringing in Batteries for Inverters into Nigeria by mid-March, 2018. (Deo Volente).

We will be opening the market to distributors and sub-distributors.

We will also come in with Solar Panels and Hybrid solutions that use Solar & Generator (idea being minimal fuel from use of Generator and ultimately a suspension of the use of generator while concentrating on Solar plus Inverter with Battery Storage).

Wanted :

1. Major Distributors

2. Sub-Distributors

3. Strategic outlets


All over Nigeria.

Franchises- States, Regions, Cities, Towns, etc

Engineer Idowu Oyebanjo





Conversion of degrees from Celsius to Fahrenheit & vice- versa

T(°F)= T(°C) X9/5 + 32


T(°F)= T(°C) X 1.8 + 32


Convert 20 degrees Celsius to degree Fahrenheit:

T(°F)= (20°C) X9/5 + 32= 68°F


Convert to Fahrenheit

1. 50 degrees celcius

2. 100 degree celcius

Convert to Celsius

1. 68 degree Fahrenheit

2. 86 degree Fahrenheit


To convert from Fahrenheit to Celsius, subtract 32 and divide the result by 1.8

T(°C)= (T°F-32) X5/9 or

T(°C)= (T°F-32) X5/9

For example,

Convert 122°F to degree celsius.

T(°C)= (T°F-32) X5/9= (122-32)X5/9=50°C

Response from one tutee:

While in Secondary School, I had no idea of HOW TO CONVERT FAHRENHEIT TO DEGREE CELSIUS.

Even my physics teacher wasn’t able to put me through.

Thank you Mr Oyebanjo
Learnt a new thing today

Niagorom Paul Nwosu



One of the most important elements of the power sector recovery programme (PSRP) needed to realize the economic recovery and growth plan (ERGP) of the Federal Government (FG) and the Ministry of Power is the reduction of non-technical losses in the Nigerian Electricity Supply Industry (NESI). Efficient, resilient and financially healthy power sector is a requirement for the economic development of any nation.

Every power network has losses, both technical and non-technical.

Distribution network losses refer to the difference between the electrical energy entering and leaving the distribution network for technical or non-technical reasons. These power or energy losses represent significant economic losses to the power value chain and must be measured, managed and mitigated for a successful power sector reform program.

Technical losses on the power network occur due to the physics of flow of electricity through the network. As current flows through power system components such as cables, overhead lines, switchgears, transformers, connection points, measurement systems and other equipment that carry energy to and from customers, energy is continuously dissipated, mostly transformed into heat and noise. These losses cost money and are usually included in the tariffs paid by the consumers. Technical losses can be variable (load related), fixed (non-load related) or due to uncontracted consumption of network equipment.

Non-Technical losses on a power network is the embodiment of electricity delivered and distributed via the network which cannot be measured or properly accounted for. They occur primarily due to unidentified, misallocated, and inaccurate energy flows, unmetered supplies, unpaid bills, electricity theft, illegal connection, estimated billing, inadequate metering, meter by-pass, etc. Non-technical losses are caused by actions that are external to the power system and in all cases, a poor level of management by the distribution company (DisCo) operating the network is to blame largely as a result of poor network equipment and information management systems, absence of robust energy data processing and management systems, or due to generally poor customer engagement and management processes. These losses relate to commercial and collection issues and are so named.

The aggregate technical, commercial and collection (ATC&C) losses in the NESI is huge and this has the potential to deter any passionate investor from the sector. Hence, it will not be out of place if the sector can be provided with adequate financial, technical, institutional and commercial interventions to ensure its optimal performance and reduction in non-technical losses in the distribution network.

During the privatization of the power industry in Nigeria by the Bureau of Public Enterprises (BPE) and the National Council on Privatization (NCP), one of the criteria that was used to select the preferred bidders for the DisCos is the ability to reduce technical and non-technical losses as this has the potential to impact on the power sector positively. The non-performance of DisCos in this regard is therefore a significant breach of the license conditions and performance agreements they signed to.

The reduction in the aggregate technical, collection, and commercial (ATC&C) losses in the NESI is fundamental to the survival of the electricity market and therefore the realization of incremental, stable and uninterrupted power supply in Nigeria. A systematic approach based on the output measure technique is about the only means available in the world of power systems to achieve a performance driven development of an efficient and functional electricity distribution system in the NESI.


Improvement in processes & systems

There are a number of solutions that can assist with the reduction of non-technical losses on the distribution network. One solution is in the improvement of systems and internal processes by the adoption of international standards such as Standard Transfer Specification (STS) for prepayment systems via hosted services. Losses from payment systems and internal processes of DisCos are largely ignored and can be quite significant. Ghost vending is popular in the market but the Nigerian Electricity Regulatory Commission (NERC) appears to be unaware of it or at best not doing anything to stem the tide of the ugly occurrence. This is a situation where third parties who have access to the STS codes of DisCos carry out illegal sales of tokens. Robust monitoring an oversight by NERC is absent even as the illiquidity and debt profile of the NESI grow astronomically. In addition, a data driven system of processes must be implemented in NESI immediately to ensure that most information does not go unrecorded.

Smart Metering

Another solution is the deployment of smart metering technologies at all consumer terminals. Advanced Metering Infrastructures (AMI) technology for example will enable the deployment of Automatic Meter Reading (AMR) in network clusters and this can lead to a more effective billing system. Automatic Meter Reading (AMR) is the technology for automatically collecting consumption, diagnostic, and status data from energy metering devices and transferring that data to a central database for billing, troubleshooting, and analyses. This technology will save DisCos the expense of periodic trips to each consumer property to read a meter. Another advantage is that billing can be based on near real-time consumption rather than on estimates which are based on past or predicted consumption levels. This timely information coupled with analyses can help both DisCos and customers better manage power flows and consumption. Additional benefits include increased efficiencies, outage detection, tamper notification and reduced labour cost as a result of automated readings, connections and disconnections, opportunity to offer new innovative products in addition to customizing packages for customers, more flexible billing cycles for customers who will have opportunities to manage their energy consumption and change from one supplier to another with actual meter data, demand side management (DSM), distributed energy resources (DERs) etc.

The deployment of smart metering should be seen as a national emergency. The present crop of “investors” in the NESI does not have the financial backbone to deliver this project without any financial intervention from the Government who can later claw back this investment via regulatory mechanisms. The roll out of Smart Metering technology will be a game changer in view of the fact that electricity is a major driver of industrialization in any economy.

The effective and efficient implementation of the smart metering project will not only lead to a viable and reliable NESI but also increased productivity in agriculture & labour, improvement in delivery of health & education, access to communications (radio, telephone, television, mobile), improved lighting after sunset, increased public safety through outdoor lighting and more. On a more social level, studies have shown that household electrification also increases the likelihood that women would get more empowered to study and earn income.

Corruption is the bane of the power sector as well as the wider Nigerian society. Everyone everywhere looks for a way to exploit the system. The collusion of staff of electricity companies with consumers to by-pass meters, the paradox of estimated bills, entrenched poverty in the society, the believe that electricity should be a social service to be provided by the government, poor network infrastructure are some of the highlighted reasons for having up to 50% losses on the power network. Much can be done to reduce electricity theft by using technology such as e-metering.

The perennial excuse of lack of affordability or ability to pay for electricity consumed by citizens attendant to the general poverty levels in the society, sheer ignorance, impunity for theft, endemic corruption in the NESI and the wider Nigerian society, the believe that electricity should be provided as a social obligation from the government of an oil “rich” Nigeria are some of the reasons why power theft is rampant.

Eradicating electricity theft will align with the objectives of both PSRP and ERGP as this will boost the economy. Power theft is not unique to Nigeria. Only the scale of widespread is alarming here. Electricity robbers make all consumers pay more and worsen the legacy of on-going debts in the NESI. Unmetered customers get involved in power theft but e-metering/smart metering is part of the solution to this menace. Yes, power theft is a global challenge, albeit to a larger scale in Sub-Sahara Africa. We can learn from the experiences of South Africa, Mozambique and Botswana on how to tackle this ugly headed cankerworm!

Licensing of Meter Operators

Alternatively, as it is the case in the United Kingdom and elsewhere, utility metering can be handled by certified and licensed professionals called Meter Operators. These service providers will work with the DisCos to install and maintain the smart meters at the customer premises for a predetermined fee. In this case, the role of the Federal Government of Nigeria is reduced to providing the enabling environment by way of funding, legislations and regulations for this set of service providers and investors alike to proffer solutions to the teething problems bedevilling the power sector in Nigeria.

Energy Efficiency

Energy Efficiency is also an underlying solution to energy deficiencies and collection losses. Implementing practical energy efficiency projects such as the free replacement of existing bulbs with energy saving equivalents, enlightenment campaigns such as the energising education programme (EEP), energy audit, School-to-School training etc can be very apt in reducing losses when combined with power system planning, and load balancing. Yes, the availability of reliable, quality and affordable power helps with the rapid growth in agriculture while guaranteeing the industrial and overall economic development of the nation.

Rural Electrification and off-grid solutions

Presently, power supply in rural areas in many parts of the country is inadequate and unreliable. In the rural areas, the agricultural and non-agricultural loads (domestic and non-domestic) are typically catered for through common distribution networks. The distribution utilities resort to frequent load shedding in rural areas to mitigate the gap between supply and demand which affects power supply to agricultural settlements as well as non-agricultural consumers owing to their shared piece of distribution network. Yet, the demand of electricity in rural areas is increasing day by day due to increase in customer base, changes in lifestyle and consumption pattern which requires continuous strengthening of the distribution network, necessary to ensure reliable and quality power supply in rural areas with the potential to transform and improve the future energy situation in Nigeria. Deployment of renewable-based off-grid solutions such as Solar Homes, Solar-Hybrid, micro-grids etc will be apt for the rural areas as well as underserved communities in Nigeria.

Load balancing

Feeder separation in rural areas to ensure supply of electricity to agricultural based and non-agricultural consumers are differentiated through dedicated feeders is in order. This arrangement will allow the DisCos to ensure adequate and reliable power to farmers as well as to rural households resulting in high productivity and farm security. Besides, when the non-agricultural rural households get regular and uninterrupted power supply, there will be an improvement in the quality of life in rural areas, a panacea for boosting economic activity. Load balancing across the three-phases of a distribution network reduces negative sequence currents and therefore losses on the network.

Regulatory Intervention

NERC should as a matter of urgency develop an adequate incentive for loss reduction by setting realistic loss targets, penalties and bonuses. Also to be included are schemes that reward effective customer engagement and stakeholder management processes with the goal of reducing losses and energy theft.

True, the cost of loss reduction may be high but the benefits far outweigh the cost. Therefore, the aforementioned strategies can be of help in reducing the high level of non-technical losses being experienced within the NESI so as to forestall further loss of revenue which is the main attraction for would-be investors.

I am very optimistic that suggested measures and more, when implemented, will facilitate the reduction of non-technical losses to the barest minimum within the distribution network in the NESI and investors will not continue to shy away from investing in the NESI.