Nigeria Energy

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As the single most populous nation in Africa, Nigeria recently overtook South Africa as the largest economy on the continent. Natural resources, oil and gas in particular, comprise the country’s single largest revenue-earner but the 170m person economy also has seen significant activity in recent years into the industrial, financial, telecoms and – as of 2013 – power sectors.

Businesses and consumers in Nigeria will be hoping that a more reliable electricity supply could be in sight after the government transferred most of the country’s power generation and distribution to the private sector at the beginning of November.
The role of locally-owned firms in Nigeria’s oil sector is expected to expand further in coming years, even as international producers move away from onshore and littoral fields. However, there are some who query if the local industry is ready to take the step up.
An agreement to invest in coal-fired power generation could be a positive move for broadening Nigeria’s energy mix and strengthening formal grid supply, which lags well behind demand.
Long-awaited reforms to Nigeria’s oil industry may be gaining momentum again. Investors are seeking clarity about the new structures to be introduced by the passage of the Petroleum Industry Bill (PIB), now in its fifth year of deliberations. The legislation is expected to increase efficiency and transparency, although some aspects of the code are proving tricky to resolve.

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