Utilities
From The Report: Nigeria 2017
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As Africa’s largest oil producer, Nigeria is a key member of the Organisation of the Petroleum Exporting Countries (OPEC) and the world’s fourth-largest exporter of liquefied natural gas. Policy moves over the past two decades have enabled young Nigerian companies to acquire and develop oil and gas blocks, build pipelines and distribution networks, and soon, based on the current project pipeline, refineries and power plants as well. There is still ample room for improvement, however. Renewed militant activity in the Niger Delta region – where much of the upstream activity is concentrated – continues to disrupt production, while the country’s regulatory framework is ageing, with a long-awaited overhaul yet to materialise. Nigeria’s energy sector is largely awaiting the passage of the Petroleum Industry Governance Bill – which has been on the cards for roughly a decade – but given the recent momentum in the National Assembly, the next year may finally see that happen, which would bring in significant sector changes. This chapter contains interviews with Emmanuel Ibe Kachikwu, Minister of State, Petroleum Resources; Femi Otedola, Chairman, Forte Oil; Mohammad Sanusi Barkindo, Secretary-General, OPEC; and Guido d’Aloisio, Central Africa Regional Manager, Saipem.

Articles from this Chapter

Overview

Power through competition: Privatisation across the sector drives improvements in efficiency
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As Africa’s largest and most populous economy, with a vibrant private sector and vast natural resources, Nigeria has strong potential for growth. However, that potential is consistently hindered by an underdeveloped utilities sector. Providing utilities remains one of Nigeria’s greatest challenges, as a sizeable portion of the population is still without reliable access to power, clean water and sanitation services. Unreliable electricity is particularly damaging for the economy, with…

Interview

Alternating currents: Babatunde Fashola, Minister of Power, Works and Housing, on changing practices within the power sector
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Interview :Babatunde Fashola How successful has the privatisation of the power generation and distribution segments been? BABATUNDE FASHOLA: What we are concerned with are long-term investments. The privatisation process is only the first step. Like every policy, it is not perfect and certainly has its weaknesses, but the idea behind it is one that we agree with. Private capacity, entrepreneurial ability and private capital will be defining elements for the sector in the future. To that extent,…

Interview

A bright outlook: Femi Adeyemo, CEO, Arnergy, on enhancing private sector involvement in energy production and the potential of solar
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Interview: Femi Adeyemo What are the biggest constraints to investment in Nigeria’s power generation sector? FEMI ADEYEMO: I see the lack of a cost-reflective tariff, policy back and forth, and over-regulation as the biggest obstacles to the take-off of Nigeria’s generation sector. Even its privatisation has not enabled the industry to overcome these issues. The sector needs to be less regulated, innovative, decentralised and market based. According to the Nigerian National Bureau of Statistics,…