Nigeria Power Sector Program (NPSP) Ikeja Electric Assessment Report

The company is one of 11 privatized electricity distribution companies in Nigeria, covering an area of 1257.48 square kilometers. The Sahara Group acquired a 60 percent controlling equity interest in the utility in 2013, with the Federal Government of Nigeria retaining the remaining 40 percent. Ikeja Electric is set up into six independent Business Units, which devolve into 57 Undertakings and the same number of Service Centers. The company has a complex organizational structure, with multiple layers of management and a lack of clear reporting lines. This has hindered its ability to make informed decisions and implement effective strategies. The company's performance has been hindered by various challenges, including a lack of investment in its network, inadequate metering infrastructure, and poor working conditions. These challenges have resulted in significant losses, with the company's losses estimated to be around 30% of its revenue. To address these challenges, the Power Africa (PA) program has provided technical assistance to Ikeja Electric, with the aim of improving its commercial management and reducing losses. The program has identified several focus areas for assistance, including improving the company's network planning and metering infrastructure, as well as its working conditions and stakeholder engagement. The Power Africa program has also developed a comprehensive diagnostic study for Ikeja Electric, which has identified the company's strengths and weaknesses. The study has recommended several interventions aimed at improving the company's performance, including the development of a more business-focused organizational structure, improved network planning, and enhanced stakeholder engagement. Ikeja Electric's six Business Units are responsible for managing the company's operations, with each unit responsible for a specific geographic area. The units are: 1. Abule-Egba Business Unit: responsible for managing the Abule-Egba area. 2. Ikeja Business Unit: responsible for managing the Ikeja area. 3. Akowonjo Business Unit: responsible for managing the Akowonjo area. 4. Ikorodu Business Unit: responsible for managing the Ikorodu area. 5. Shomolu Business Unit: responsible for managing the Shomolu area. 6. Oshodi Business Unit: responsible for managing the Oshodi area. Each Business Unit is responsible for managing a specific geographic area, with its own set of challenges and opportunities. The units are supported by a network of Service Centers, which provide technical and administrative support to the Business Units. The Power Africa program has identified several focus areas for assistance, including improving the company's network planning and metering infrastructure, as well as its working conditions and stakeholder engagement. The program has also developed a comprehensive diagnostic study for Ikeja Electric, which has identified the company's strengths and weaknesses. The study has recommended several interventions aimed at improving the company's performance, including the development of a more business-focused organizational structure, improved network planning, and enhanced stakeholder engagement. The program has also identified several key performance indicators (KPIs) to measure the company's progress and success.