Electricity revenues may top N1.2trn post privatisation

 

 

The revenues generated in the power sector post privatisation may hit N1.2 trillion per annum in three years with improved efficiency and output, BusinessDay analysis of available data from Power Holding Corporation of Nigeria (PHCN) shows.

Analysts say the electricity revenues have the potential to dwarf revenues and profitability of the earlier deregulated telecommunications industry, making the power sector a goldmine for investors able to get exposure to the sector.

PHCN electricity revenues currently average N22 billion a month, at an efficiency (collection) ratio of 46 percent and power output of 4,000 MW.

“Without increasing power, and just by doubling efficiency, you could generate N44 billion a month next year, and as we gradually get close to 10,000 MW in three years, I see the number hitting N100 billion a month,” said a source at the National Electricity Regulatory Commission (NERC).

 

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