How is Nigeria Fairing: Getting Electricity

Getting Electricity
Nigeria ranks 180 out of 190 in Getting Electricity, improving two places up from last year rank of 182 (Doing Business 2017). Electricity is an important factor in all the sectors of any country’s economy but this has been Nigeria’s greatest setback over the years. Although there have been improvements in some areas, the country’s electricity generation and distribution are far from being reliable.
In this article, we will take a look at the procedures, cost and time it takes to obtain a permanent electricity connection in Nigeria, the improvements over the years and recent policies.
You can take out time to read our previous publications for this series – How is Nigeria Fairing.

Number of Procedures to Obtain Permanent Electricity Connection

Getting Electricity – Procedure

The World Bank report 2017 indicates that nine procedures are required to obtain permanent electricity connection in Nigeria, using Eko Distribution Company as a case study. There has been no reduction in the number of procedures involved over the past five years.

No.
Procedures
Agency
1.
Submit application to Eko Electricity Distribution Company and await clearance letter
Eko Electricity Distribution Company
2.
Receive tentative approval letter, submit payment and request and receive site visit
Eko Electricity Distribution Company
3.
Purchase and install external connection equipment
Electrical contractor
*4.
Obtain right-of-way permit
The State Ministry of Works or State Roads Maintenance Agency
5.
Request and receive inspection by inspecting engineer
Nigerian Electricity Management Services Agency
6.
Submit payment to Federal Ministry of Power, Works and Housing and pick up inspection certificate
Ministry of Power, Works and Housing
7.
Submit inspection certificate to utility, request and receive estimate and make payment
Eko Electricity Distribution Company
8.
Obtain internal wiring inspection and test of complete installation by utility
Eko Electricity Distribution Company
9.
Obtain meter installation by utility and then electricity flow
Eko Electricity Distribution Company
* Takes place simultaneously with previous procedure.

Number of Days to Obtain Permanent Electricity Connection

Getting Electricity – Time

There has been a significant reduction in the time it takes to obtain a permanent electricity connection in Nigeria. It takes approximately 198 days to obtain a permanent electricity connection in Nigeria according to the World Bank Doing Business index 2017.

No.
Procedures
Time
1.
Submit application to Eko Electricity Distribution Company and await clearance letter
44 calendar days
2.
Receive tentative approval letter, submit payment and request and receive site visit
31 calendar days
3.
Purchase and install external connection equipment
18 calendar days
*4.
Obtain right-of-way permit
14 calendar days
5.
Request and receive inspection by inspecting engineer
14 calendar days
6.
Submit payment to Federal Ministry of Power, Works and Housing and pick up inspection certificate
1 calendar days
7.
Submit inspection certificate to utility, request and receive estimate and make payment
30 calendar days
8.
Obtain internal wiring inspection and test of complete installation by utility
30 calendar days
9.
Obtain meter installation by utility and then electricity flow
30 calendar days
* Takes place simultaneously with previous procedure.

Cost of Getting Electricity

Getting Electricity – Cost

There has been a tremendous reduction in the cost of obtaining a permanent electricity connection in Nigeria.

No.
Procedures
Cost
1.
Submit application to Eko Electricity Distribution Company and await clearance letter
NGN 0
2.
Receive tentative approval letter, submit payment and request and receive site visit
NGN 0
3.
Purchase and install external connection equipment
NGN 1,559,250
*4.
Obtain right-of-way permit
NGN 0
5.
Request and receive inspection by inspecting engineer
NGN 0
6.
Submit payment to Federal Ministry of Power, Works and Housing and pick up inspection certificate
NGN 2,000
7.
Submit inspection certificate to utility, request and receive estimate and make payment
NGN 575,000
8.
Obtain internal wiring inspection and test of complete installation by utility
NGN 0
9.
Obtain meter installation by utility and then electricity flow
NGN 0
* Takes place simultaneously with previous procedure.

Some Specific Policy Reforms

Reduction in the number of procedures from 9 to 5: The Nigerian Electricity Regulatory Commission (NERC) has issued a draft order officially reducing the number of procedures for new connections to the grid from 9 to 5.
Reduction in the timeline from 198 days to 61 days: NERC has issued a draft order officially reducing the timeline for new connections to the grid from 198 days to 61 days.

The Presidential Enabling Business Environment Council (“PEBEC”) is the body tasked with the responsibility of developing and driving these reforms. Its Chairman Vice President, Mr Yemi Osinbajo, SAN  has promised to introduce more far reaching reforms that will catapult Nigeria as the leading investment destination in Africa.

Read on:  How is Nigeria Fairing:  Registering Property

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2 responses to “How is Nigeria Fairing: Getting Electricity”

  1. As always, doing your homework well. We need more informative articles/reports like this. Keep it up, Cocreatit.
    The most pathetic issue is that after all the procedure, time and expenses, you aren’t guaranteed of 24/7 power to run your business. Extra costs will have to be expended for a standby source of power.

    • Cocreatit says:

      A lot of small and medium scale businesses in the country end up being put out of business due to this. With many startups emerging in the country with solutions and alternatives, it’s only a matter of time with the support of the government, things will get better for Nigeria.

      Thank you, Daniel. We will do our best to keep these informative articles and reports coming. Our next publication of the series “How is Nigeria Fairing” will be online next week Wednesday.

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