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Wale Aboyade's thesis - lumes

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Akinwale Aboyade, LUMES Thesis, 2003/2004<br />

Table 3.3 Average Daily Tonnage of Refuse received at Olusosun Site between March and June<br />

2004 (Source: authors own construct with data gathered from landfill site)<br />

Type of waste Monday Tuesday Wed. Thurs Friday Sat Sunday<br />

Weekly<br />

Averages<br />

LAWMA 730 850 890 820 815 1130 610 835<br />

Local Goverment<br />

Domestic Waste Sanitation<br />

Agencies 150 135 150 210 100 2665 60 835<br />

Private<br />

Collectors 1340 1325 1215 1360 1220 1610 1140 835<br />

Commercial waste<br />

(from markets, non<br />

harzadous waste<br />

from institutions etc) LAWMA 220 190 210 170 180 130 180 835<br />

Total domestic and<br />

commercial waste 2440 2500 2465 2560 2315 5535 1990 2829.29<br />

LAWMA,<br />

Indusrial waste and NAFDAC and<br />

metal scraps SON 230 250 270 225 220 250 270 245.00<br />

3.2 Energy Regulations and description of energy market<br />

The National Electric Power Authority (NEPA) established in 1972 maintains a total monopoly of<br />

generation, transmission and distribution of electric power. The industry has been faced with a lot of<br />

problems as years of neglect, corruption and mismanagement has rendered it very nearly comatose.<br />

Supply of electricity fluctuates widely and had by 1999 dropped to as low as 1500MW from an<br />

installed capacity of 5900MW (FRN, 2000). Even at the best of times, electricity supply in Nigeria<br />

before 1999 has never exceeded 2,470MW out of a total installed capacity of 5906MW (compared to<br />

over 40,000MW in South Africa during the same period 1 . Only 36% of the populace has access to grid<br />

electricity and even where a connection to the grid exists, power supply is often unreliable. Supply has<br />

always fallen well below demand especially in Lagos the commercial hub of the country where it rarely<br />

exceeded 800MW, is a paltry 15% of the estimated demand. Industries and residents have to meet their<br />

electricity needs from private generation from petrol and diesel engines (total private generation in<br />

Nigeria is about 2400MW and makes the country the largest purchaser of standby generators in the<br />

world (FRN, 2000)). These industries and private residents and pay heavily for such supply because of<br />

the ever increasing cost of diesel and petroleum arising from the deregulation of the downstream<br />

petroleum sector. Tyler G (2002) in his article in Findings, a World Bank journal revealed that private<br />

generation at an average cost of ^219.05<br />

is approximately two and half times the cost of publicly<br />

provided electricity. NEPA produces power from its diesel and hydro sources at over ^10.00/KWh and<br />

sells to its residential clients for between ^1.2 and ^4/KWh and to its commercial and industrial<br />

customers for ^6 - 8.5KWh (NEPA, 2004).<br />

The new government, in a bid to boost power supply from its precariously low levels encouraged the<br />

adoption of power purchase agreements between NEPA and Independent Power Producers. Lagos state<br />

was the first to seize this opportunity as it immediately entered into negotiations with Enron (who later<br />

1 From the website of the South African National Electricity Regulator (NER)<br />

2 1^ - Nigerian Naira (1US$ = ^100 .Approx.)<br />

25

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