Reduce Transmission and distribution power outages by at least 75%Increase revenue collection for the Generation, transmission and distribution companies by 50%Improve customer service delivery in the distribution and marketing of power.Through the planned generation capacity projects for a brighter future, the current status of power generation in Nigeria present the following challenges;I.Inadequate generation capacityII.Inadequate and delayed maintenance of facilitiesIII.Insufficient funding of power stationsIV.Obsolete equipment, tools, safety facilities and operational vehiclesV.Inadequate and obsolete communication equipmentVI.Lack of exploration to tap all sources of energy from the available resources; andVII.Low employee morale.3.Electrical and Civil Engineering – In the Electrical and Civil sector, the story is more mixed. Private investment has grown in some Nigeria market segments, such as commercial and highway projects, even as investment in less visible sectors generally supported by local or federal government funds, such as water, sewage, and public safety
has declined. Meanwhile, most Electrical and civil engineering firms are trying to interpret mixed messages from the new Nigerian government administration regarding itsongoing mega infrastructure spending program. In Nigeria, Electrical and Civil engineering companies face 3 major trends that currently affect their prospects.Contracting will get tougher. Electrical and civil engineering contracting is changing in multiple ways, creating new challenges for management teams. One clear shift is the migration to lump-sum turnkey contracts – in which firms bear the project cost and risk and guarantee operational readiness. Clients in both the private and public sectors are becoming far savvier about what projects should cost, and they are benefiting from greater competition for bids. As a result, they can demand lump-sum turnkey contracts. It is expected that this trend will continue to accelerate over the next year.Another challenge is the new approach to project definition. Clients are breaking up larger initiatives into smaller, discrete elements. This tactic garners the client a better price, with a trade-off; Clients must take on a greater share of responsibility for project management and controls. These unbundled contracts also prevent players from subsidizing weaker and less cost-effective areas of their operation with the profits from stronger areas.Yet another factor making contracting tougher is the industry’s shift to public-private partnerships (PPPs). In other parts of the world, the migration to PPPs is old news. In Nigeria however, it is still in the early stages and gradually finding its footing.
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