Nigeria Energy

In spite of the ongoing uncertainty fed by the still-pending passage of the long-awaited Petroleum Industry Bill, stronger forecasts for offshore production and a renewed focus on processing facilities bode well for Nigeria’s ever-important energy sector.

The privatisation of Nigeria’s power sector continues to ease forward, with the Ministry of Power now expecting the process to be completed by the second or third quarter of 2012. Meanwhile, in December the government licensed 20 independent power producers (IPPs), in a move that could significantly boost the country’s power-generating capacity over the next few years.

With local refineries unable to meet domestic demand, Nigeria – Africa’s largest exporter of crude oil – currently imports more than 70% of its petroleum needs. However, this could change if plans to build three new refineries are realised.

While power outages and widespread lack of access to electricity have long been problems in Nigeria, the administration of President Goodluck Jonathan is seeking to breathe new life into the government’s electricity privatisation programme, and an influx of private investment may finally solve the country’s power troubles.