Only ten years ago, the country rose from having a teledensity in telecommunications of 0.04 to 64.16 per cent, that is about 400,000 lines in 2001 to 89.9 million active lines as at January 2011, according to statistics from the Nigerian Communications Commission (NCC), making it the biggest market for telecommunications growth in Africa and beyond.

This magic happened because of the liberalization of the sector, which knocked off the erstwhile government-owned redundant giant, the Nigerian Telecommunications, NITEL which had been the major player in the country apart from a few private telecom operators.

What was in the coffers for investors who plunged in?

The biggest player and earner in the telecommunications industry in Nigeria has been MTN. With a total capital expenditure of over $7 billion in the last decade, it has consistently earned massive returns on its investment. From an earning of $568 million in its first full year trading, it hit a whopping N749 billion ($8.6 billion) in its 2010 financial year, making it take its proactive lead in the market of total N1.34trillion earned by all the telecom operators in Nigeria.

A look into the country’s energy terrain

Eagle-eyed economy watchers are cock-sure that the energy sector will create another round of windfall for optimistic investors who want to take advantage of the population of over 150 million potential consumers in the country just like it happened in the telecommunications sector.

The current state of epileptic and insufficient power supply which militates against the anticipated development plan of the government of vision 2020 among other socio-economic plans have been hinged on the progressive integration of a workable power project plan in the next five to ten years.

Private businesses also look forward to an overhaul in the energy sector which will access to cheaper generation of power in the areas of manufacturing, production, operations and other areas in their economic pursuits. Most companies get power supply by using diesel and petrol powered generators to run their companies. And as put by the chairman, infrastructure committee, Manufacturers Association of Nigeria, MAN, Reginald Ohia, in the association’s 13th general meeting this year, that its members spend N37 billion ($240 million) yearly to purchase diesel to power generators for their operations annually.

With an available capacity of a meager 3,200 megawatts, the nation still has a yawning gap of an estimated required electricity output of about 12,000 megawatts. Electricity is currently generated from gas-fired or hydro power plants.

Apart from a few Independent Power Projects, IPP managed by private companies, most assets are owned by state-owned companies. The Power Holding Company of Nigeria (PHCN) formerly National Electric Power Authority (NEPA), has been the monopolist of all commercial electricity supply exclusive of all other organizations and also promulgated in the 1970’s. With its dismal performance, it hindered growth in the power sector, with its negative halo effect inherent in the economic- developmental speed since its inception.

Sufficient electricity generation is the biggest challenge President Goodluck Jonathan is tackling, while concurrently stumping out political/security bravados by disgruntled political stakeholders and the Boko Haram sect which are re-emerging as a grotesque monster and threatening to trivialize the efforts of his administration in attracting and retaining foreign direct investment.

The president’s power plan project is a continuity of the 2005 Electricity Act which unbundled the PHCN into 17 units consisting transmitting company, 11 generating companies and six distribution companies, the outcome of privatization.

The government estimates that operators will invest $6 billion a year to realize a steady, adequate electricity supply is spurring big international players in the energy sector to act fast in consideration that it proposes a good deal by giving consideration to pricing, interest rates, exchange rate, tax holidays and other economic indicators.

The deadline for the purchase of Request for Proposal, RFP documents is Aug. 26, which is a culmination of draft industry agreements posting slated for Aug.15 for bidders to confirm their intention to bid. When agreements are reached with investors, it may be the beginning of the end of incessant power failure in the country. But could it really be?