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Nigeria's profile in the estimation of International telecommunications union (ITU) in terms of teledensity has risen significantly with over Thirty million telephone lines now connected as at December 2006. Nigeria has surpassed the ITU minimum prescription of one telephone line to 100 inhabitants.

It is now one telephone line to less than 30 inhabitants. With less than $2 (Two Dollars) and within the space of minutes one can get connected to any mobile phone lines of his choice, excluding the handset.

Energy - Electricity

Nigeria has approximately 5,900 megawatts (MW) of installed electric generating capacity, in the form of three hydro-based stations and five thermal stations. Nigeria faces a serious energy crisis due to declining electricity generation from domestic power plants. Power outages are frequent and the power sector operates well below its estimated capacity.

The Nigerian government is hoping to increase foreign participation in the electric power sector and is looking for independent power producers to generate and sell electricity to NEPA now (Power Holding Company of Nigeria). In October 2000, NEPA signed a partnership agreement with South Africa's Eskom to help improve electricity supply. Eskom will help develop NEPA's repair capabilities, execute transmission line projects, and participate in Rehabilitating, Operate and Transfer (ROT) schemes for the running of Nigeria's power stations. Shell announced in December 2001 that it had been awarded a 15-year ROT contract for units 1-4 of the Afam Power Plant, and a Lease Operate and Transfer (LOT) contract for Afam's fifth unit.

Shell will refurbish the Afam power plant at a cost of about $500 million, and with capacity expanding from 400 MW to 900 MW. Eskom is expected to provide management of maintenance and operations at Afam. The determination of the new companies to be created from NEPA has been determined. NEPA's transmission network will remain a single entity, the Nigeria Transmission Company, but the generation sector will be split into six independent companies.

11 companies will be created from NEPA's current distribution operations. No time table on the creation of the new companies has been announced. Currently, only 10% of rural households and approximately 40% of Nigeria's total population have access to electricity. NEPA plans to boost this share to 85% by 2010. NEPA's plan would call for an additional 15,000 kilometers (9,000 miles) of transmission lines, 16 new power plants, and new distribution and marketing facilities.

The government awarded contracts for three 335-MW gas-fired plants, valued at $1.1 billion, in November 2002. China's CMEC will build the facility at Okitipupa in Ondo State. A second plant, to be built by a Chinese firm, SEPCO, will be located at Papalanto in Ogun State. Siemens will build the plant at Ajaokuta in Kogi state. The government also is expanding its rural electrification program. The government has begun 1,400 rural electrification projects, and has awarded 410 new contracts. In 2005, NEPA changed its name to Power Holding Company of Nigeria (PHCN) as a part of the total reorganisation of the energy sector.

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