Nigeria Energy

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.

As evidenced by the constant hum of diesel generators across the country, electricity in Nigeria is a big issue, with low generating capacity having long hampered growth. However, sizable progress has been made over the past month to reverse this trend, with reforms to Nigeria’s power sector underway and efforts to almost double electricity production by the end of 2013 boding well for consumers.

In spite of the “water no get enemy” mantra that is plastered across the blue and white pipelines of Lagos, Nigeria is in danger of falling short of targets it set more than a decade ago to provide clean water and sanitation to the majority of citizens. However, increased government funding for water management and calls to encourage private investment in treatment plants and distribution systems could help put targets back within reach.

The government has vowed it will push ahead with plans to privatise Nigeria’s power sector, despite the minister responsible for unbundling state power assets stepping down and increased opposition from unions.