Nigeria: Developing Nigeria’s Renewable Energy PotentialNigeria is facing significant challenges in reforming and providing the required impetus for development of its power sector.
The country’s Electricity Supply Industry (ESI) has been plagued by a variety of legacy, structural and institutional challenges which have resulted in overall decline in service levels across generation, transmission and distribution segments of the industry.
In response, the government over the past decade and half has initiated various transformational projects, including the National Integrated Power Project (NIPP) aimed at increasing capacity, upgrading existing infrastructures as well as encouraging investment in the sector through various privatisation and market liberalisation initiatives.
These privatisation programmes have presented a myriad of policy and regulatory challenges and have placed additional burden on policy makers and industry regulators as they try to contend with the dynamic phase that the ESI is undergoing at the moment. Huge sums of capital have been invested by the government in their attempt to find lasting solution to the industry’s sub-optimal performance.
However, the growing deficit in terms of power generation and power demand when considering our economic growth trajectory of around 6% per annum, remains formidable.