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Nigeria's power sector open for business

2013

A newly liberalized market welcomes new players. But fundamental challenges persist and must be addressed to deliver the power required to secure the nation's future

There is a high degree of optimism surrounding the industry's prospects. The government is often hailed in the press for crafting and implementing a prudent and transparent privatization process that is moving forward with great momentum. Key parties at the helm of privatization are credited with opening up opportunities for a host of enterprises, from private investors to equipment suppliers and technical service companies. Agency spokespersons release public statements from time to time, promising drastic increases in electricity generation and supply within a relatively short timeframe.

This exuberance must be tempered with the reality that key issues impacting the long-term success of privatization are yet to be resolved. As demand continues on its upward trajectory, stiff bureaucracy, conflicting policies, infrastructure inadequacy and law and order problems remain the status quo. Without sweeping and effective changes in government policy and the creation of a business climate that attracts significant private sector investment the sector will not deliver the power required to secure the nation's future.

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