Report on Project and Project Management in Nigeria

An Analysis of the Failure of the National Power Project for the Supply of 6000MW in December 2009

1. Introduction

The nation's power generation to the grid reportedly peaked at 3,600MW on December 22nd 2009. This was the highest output in three years according to the Minister of Power, Dr. Olanrewaju Babalola, when he briefed the media in Lagos on the same day[1]. He further revealed that the  nation has a capability of 5,500MW, with additional 300MWexpected before the end of the year from the hydro and thermal generating plants.  However, all these potential generating capacities fall short of the 6000MW promised to be achieved on December 31 by President Yar 'Adua earlier in the year as a major component of his administration's seven point agenda [2].

This failure has been confirmed by the Chief Economic Adviser to the President, Tanimu Yakubu at the opening session of the 15th Nigeria Economic Summit in Abuja on Tuesday, December 15. He was quoted as saying that:  "We may not achieve 100 percent of the target. We have been able to achieve 5,200MW so far. As I am talking to you, now another 39MW is being added to the national grid and another 100MW will be added in the next two weeks" [7], [8].

The 6000 MW target is supposed to be enough to guarantee an uninterrupted power supply in the interim. In setting this target, President Umaru Yar'Adua, revised downwards the 10,000 MW target set by his predecessor[7]. He stated  his intention to solve the nation’s electricity crisis and promised to declare an emergency in the power sector on assumption of office if necessary. He aptly explained that the provision of adequate and reliable electricity supply was crucial to achieving a transformative economy for Nigeria. This is why it is in his Seven-Point Agenda, which represent the flagship goals of his administration.

The focus of this paper is to analyse the project deliverables and their implications, the business justification, and the project planning and execution in order to elicit reasons for the failure. The analysis should enable us to identify lessons that could be learned from the failed project.

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