The report also revealed the progress made thus far in the transmission sector. This included the investment of over $1.5bn on the network to enable it to transmit up to 10,000mw by 2020 and securing most of the $2.0bn additional financing required to reach 13,000mw by 2025.The need for massive investment in the distribution sector to complement the progress being made in the transmission sector was further corroborated by the Managing Director of the Transmission Company of Nigeria, Usman Mohammed. He stressed the need for the recapitalization of the DISCOs to enable it to make commensurate investment in the distribution network.
Though electricity markets are a relatively new phenomenon, the industry now has a number of market designs that appear to work well, and have also unfortunately discovered some that worked badly. In all of these, the common denominator for a successful electricity market is: First, the need for a centrally organised mechanism needed to ensure that all the electricity produced is paid for and that the system is kept stable in electrical terms. Second, prices should be forward looking and reflect long run marginal cost for future resources, including production, transmission, distribution, administrative and environmental costs