Despite the abundance of energy resources available, Nigeria is
only able to generate 1600 MW effectively out of 6000 MW of
installed generating capacity (less than 30%). This is because most
of the power grid facilities are poorly maintained. Nigeria's power
sector retains high energy losses, between 30% and 35%, from
generation to billing. This is significantly high as compared with
the US, where power losses across lines usually come to less than
7%, even across long distances [7]. In addition, there is a low
collection rate, 75–80%, and low access to electricity by the
population. Since there is insufficient cash generation, because of
these inefficiencies, the Power Holding Company of Nigeria
(PHCN) is consequently reliant on fuel subsidies and state funding
of capital projects. Declining electricity generation from a
number of domestic power plants has sent the country into an
energy crisis during 2000/2001. Currently, the actual electricity