Power and Investment in Nigeria

by Developed Africa 12. June 2014 09:00

Energy and power could create the next big leap in economic growth for Nigeria.

There have been a number of claims that if power is correctly developed then growth rates could reach double figures. The Minister for Power, Professor Chinedu Nebo, has stated that:

if power is corrected and we have enough of it in Nigeria, our growth rate might get to double digits and that is a challenge for all of us. We are now number 26 economy in the world, but power alone can get us, faster than anything else, to one of the top (economies) in the world."

A similar prediction was also made by the Chief Executive of Petroleum Development company SEPLAT, Austin Avuru, who has predicted that if the power situation is addressed correctly then Nigeria could reach growth rates of 15%.

The government is now selling off a second round of generation and distribution companies, bringing in billions of dollars in investment and promising tens of thousands of megawatts of capacity. With as much as 40 per cent of the cost of business in Nigeria related to power supply, this could, in turn, unleash the latent potential in start-ups and small businesses."

This is a long awaited move that will definitely help improve the supply of power across Nigeria, but it is not without its challenges. The issue facing those taking over generation and distribution is reforming and improving the structures in place to allow for a better service.

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