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Nigeria’s power sector has been transformed in the past three years, but long-suffering customers are yet to notice a dramatic improvement in supply. Privatisation was supposed to cure decades of state neglect, but the sale of generation and distribution only attracted local buyers with little or no power sector experience. To make things worse, the commercial framework is weak, while gas supply to power is regularly disrupted by vandalism.
The sector may be in private hands, but the government still determines its fate. President Buhari must secure pipelines, staunch the revenue leaks from government, and - most important of all - end fuel subsidies. Multi-billion dollar savings would allow the government to honour its legacy debts, subsidise power for low-income customers and finish its programme of investments. This would stabilise the sector and set it on the path to recovery.
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Insight | Oct 2015
Nigeria's failing power sector: how Buhari can improve it
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