#

Getting Electricity in

Nigeria - Lagos

Below is a detailed summary of the procedures, time and cost required for a business to obtain an electricity connection for a newly constructed building in Nigeria - Lagos.

This information was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 190 economies. The most recent round of data collection was completed in June 2016.

Compare Nigeria - Lagos to 189 other economies.

  • Measure of efficiency
    No. Procedure Time to Complete Associated Costs
    1

    Submit application to Eko Electricity Distribution Company and await clearance letter

    Agency: Eko Electricity Distribution Company

    The client’s electrician must collect an application form at Eko Electricity Distribution Company, complete it and submit it to the utility’s office. The information requested include the electrician’s PIN (Personal Identification Number) and a letter stating that he will be in charge of the internal installation as well as the installation of the transformer. Since the required load is higher than 100 kVA, the request will be sent to EKO Headquarters for approval. This is part of an internal process. Upon approval, the clearance letter will be provided along with the list of materials to be bought by the customer.

    During the application process, a licensed electrical contractor acts on the customer’s behalf. Contractors have to be licensed so that they can be responsible for the correspondence with the utility.

    44 calendar days NGN 0
    2

    Receive tentative approval letter, submit payment and request and receive site visit

    Agency: Eko Electricity Distribution Company

    Upon receipt of the application, the utility provides a clearance letter for purchase of distribution transformer and other external connection materials. The letter provides a description of the materials to be purchased: they must be new, purchased from an accredited distributor, and must include a test certificate of transformer from the manufacturer. Once the customer receives the letter, the person must call the utility to request a site visit. A survey fee for the site visit is charged by the utility.

    31 calendar days NGN 0
    3

    Purchase and install external connection equipment

    Agency: Electrical contractor

    The customer needs to purchase cables, a distribution transformer, and installation accessories from the local market, and then carry out the external connection works.

    18 calendar days NGN 1,559,250
    * 4

    Obtain right-of-way permit

    Agency: The State Ministry of Works or State Roads Maintenance Agency

    The client's contractor obtains a right of way permit at the State Ministry of Works or State Roads Maintenance Agency. This permit can be obtained while the materials are acquired.

    14 calendar days NGN 0
    5

    Request and receive inspection by inspecting engineer

    Agency: Nigerian Electricity Management Services Agency

    NEPA’s inspecting engineer must check all materials to ascertain their quality. The engineer will check if the installation has been properly done. If it is in compliance with all requirements, a Certificate of compliance will be issued.

    14 calendar days NGN 0
    6

    Submit payment to Federal Ministry of Power, Works and Housing and pick up inspection certificate

    Agency: Ministry of Power, Works and Housing

    Once the inspection has been carried out, the client must submit a payment to the Ministry of Power and collect the Certificate of compliance.

    1 calendar day NGN 2,000
    7

    Submit inspection certificate to utility, request and receive estimate and make payment

    Agency: Eko Electricity Distribution Company

    The customer must go to the utility to request an estimate letter, which is usually prepared on the spot upon request. The contractor then makes the payment mentioned in the letter, and also submits the inspection certificate from the Ministry to the utility.

    30 calendar days NGN 575,000
    8

    Obtain internal wiring inspection and test of complete installation by utility

    Agency: Eko Electricity Distribution Company

    Once the payment foreseen in the estimate letter is done, an internal wiring inspection and test of installation by the utility is required. This is needed in order for the warehouse to be connected to the electricity grid.

    30 calendar days NGN 0
    9

    Obtain meter installation by utility and then electricity flow

    Agency: Eko Electricity Distribution Company

    Once the internal wiring inspection is complete, the utility’s connection team carries out the meter installation and turns on electricity flow.

    30 calendar days NGN 0

    * Takes place simultaneously with previous procedure.

  • Measure of quality
    Answer
    Reliability of supply and transparency of tariff index (0-8)
    Total duration and frequency of outages per customer a year (0-3)
    System average interruption duration index (SAIDI) 3100
    System average interruption frequency index (SAIFI) 540
    Mechanisms for monitoring outages (0-1)
    Does the distribution utility use automated tools to monitor outages? No
    Mechanisms for restoring service (0-1)
    Does the distribution utility use automated tools to restore service? No
    Regulatory monitoring (0-1)
    Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of supply? Yes
    Financial deterrents aimed at limiting outages (0-1)
    Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages exceed a certain cap? No
    Communication of tariffs and tariff changes (0-1)
    Are effective tariffs available online? Yes
    Link to the website, if available online http://www.nercng.org/index.php/media-and-publicity/public-notices/326-noti...
    Are customers notified of a change in tariff ahead of the billing cycle? Yes
    Answer
    Price of electricity (US cents per kWh) 20.1

    Note:

    If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff index.

    If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index.