POWER, AUTOMATION AND INDUSTRIALIZATION: THE NIGERIAN EXPERIENCE BY STANLEY OKIY B.Tech (RSUST), M.Eng (UNIBEN), MPA (UNIBEN), & Engr. DR. C.C. NWOBI-OKOYE 15TH OF JUNE 2016 7:27 PM

INTRODUCTION 7:27 PM

BACKGROUND More than 75% of the population live on less than $2 per day. More than 90% of budget spent on recurrent expenditure. More than 80% of government revenue comes from petroleum export. 7:27 PM

BACKGROUND A monolithic economy where more than 90% of the foreign exchange comes from export of oil and gas resources. A population of about 170million with a GNI per capita income of about $2,950. 7:27 PM

OUTLINE OF THE INDUSTRIAL REVOLUTION Symbol Revolution Year Information 1 1784 Steam, water, mechanical production equipment 2 1870 Division of labour, electricity, mass production 3 1969 Electronics, IT, automated production 7:27 PM

STATEMENT OF THE PROBLEM Inability to meet production targets. High incidence of downtime. Low productivity. Loss of customers goodwill. High cost of production. 7:27 PM

AIMS OF STUDY The Aim of this study is to survey the current state of power generation, transmission and distribution in Nigeria, as well as the current state of industrialization and automation with the view of finding ways of addressing the economic and developmental challenges caused by the perennial power shortages in Nigeria. 7:27 PM

Examine the development of electrification in Nigeria. OBJECTIVES OF STUDY OBJECTIVES Examine the development of electrification in Nigeria. Examine the industrial development of Nigeria. Examine the current state of automation in Nigeria. Determine the effects of electrification on automation and industrial development of Nigeria. 7:27 PM

OBJECTIVES OF STUDY CONTD Find the contributory factors to current state of automation and industrialization. Make recommendations on ways of improving automation and industrialization in order to boost growth and economic development. 7:27 PM

SIGNIFICANCE OF WORK Reduced cost of goods and services. Reduced downtime. Improved quality of products. Reduced waste and better utilization of resources. Improved capacity utilization. 7:27 PM

INDUSTRIAL DEVELOPMENT OF NIGERIA Prior to independence, Nigeria had very low industrial development. The colonialists were more concerned with exporting raw materials from Nigeria to feed industries in Europe prior to independence. At independence the need for import substitution drove the industrialization policy of the central and regional governments in Nigeria. At independence in 1960, Nigeria had a total of 389 industrial establishments. 7:27 PM

INDUSTRIAL DEVELOPMENT OF NIGERIA Four years after independence in 1964, Nigeria had about 687 manufacturing establishments which increased to 776 in 1965. At the peak of the oil boom in 1975, Nigeria had 1290 manufacturing establishments. 7:27 PM

INDUSTRIAL DEVELOPMENT OF NIGERIA Table 1: Percentage contribution of manufacturing to Nigeria’s GDP (1960-2015) Period 1960-1970 1971-1980 1981-1990 1991-2000 2001-2010 2011-2015 Percentage 6.6 7.3 6.1 4.9 3.9 4.8 7:27 PM

ELECTRICITY POWER GENERATION IN NIGERIA Electricity generation in Nigeria began in 1896 with two 30kw diesel generators. At early stages, power generation was done by individual power generating units scattered in cities and towns across the country. 7:27 PM

ELECTRICITY POWER GENERATION IN NIGERIA A government body ECN was formed to centralize and manage power generation, transmission and distribution in 1950. The national grid came into existence in 1950 and centralized power generation, transmission and distribution. Another government body NDA was formed in 1962 to tap and manager hydropower potentials of the Niger River. 7:27 PM

ELECTRICITY POWER GENERATION IN NIGERIA NDA built the first hydropower station on the Niger River in 1968 with an initial capacity of 4x80MW. NDA was merged with ECN in 1972 to create NEPA. NEPA became and inefficient public enterprise led the government to start the process of its privatization by creating PHCN in 2001. 7:27 PM

ELECTRICITY POWER GENERATION IN NIGERIA The PHCN was later unbundled in 2013 into 18 successor companies which include six generation, one transmission and 11 distribution companies. As at April 2016, the total installed capacity has risen to 12,000MW, available capacity was about 8,000MW, while actual average generation was about 3,900MW. 7:27 PM

STATE OF AUTOMATION IN NIGERIA Less than 5% of industries are automated. Automation technologies exist mostly in factories owned by multinationals. Factories are powered at least 70% of the time by generators. 7:27 PM

STATE OF AUTOMATION IN NIGERIA CONTD Industries operate on low margins due to lack of electricity. Introducing automation and robotics technologies would not be profitable to most industries (more than 90%). Electrification and industrial automation would reduce the cost of good by at least 50%. 7:27 PM

Per Capita Consumption DISCUSSION Table 2: Per capita energy consumption of some selected countries Country Approximate Population (Million) Generation (GW) Per Capita Consumption (GW/Million) Status USA 300 813 2.7100 Developed Nigeria 170 4 0.0235 Developing India 1200 235 0.1958 South Africa 50 40 0.8000 Egypt 82 30 0.3659 Germany 80 120 1.5000 Ghana 25 2 0.0800 Kenya 44.5 1.8 0.0404 Singapore 5.5 10 1.8182 Indonesia 250 45 0.1800 UAE 9.5 18 1.8947 Brazil 200 100 0.5000 Malaysia 29.72 19.023 0.6403 7:27 PM

Contribution of Manufacturing to GDP DISCUSSION Table 3: Percentage contribution of manufacturing to GDP of some countries Country Contribution of Manufacturing to GDP (%) Nigeria 5 Malaysia 26 Germany 25.8 India 17.18 South Africa 14 Indonesia 27 Kenya 6 7:27 PM

Emergency declared in the power sector in 2007. DISCUSSION Emergency declared in the power sector in 2007. Power sector completely privatized in 2013. Privatization has not achieved its objectives because it was not properly done. 7:27 PM

RECOMMENDATIONS AND CONCLUSIONS 7:27 PM

Massive investments in renewable energy such as solar power. RECOMMENDATIONS Massive investments in renewable energy such as solar power. Proper privatization of power generation, transmission and distribution. Devolution of powers to the state governments. 7:27 PM

Massive investment in automation and robotics technologies. RECOMMENDATIONS In vestment by state and regional governments in power infrastructures. Massive investment in automation and robotics technologies. 7:27 PM

CONCLUSIONS Better managerial decisions on maintenance and quality control. If the future recommendations of this research are properly applied: productivity and quality improves, downtime reduces, plant safety improves, operating profits increases. 7:27 PM

END THANKS FOR LISTENEING 7:27 PM