Utilities

Electricity is regularly cited as Nigeria’s chief obstacle to economic growth, but 2013 may mark a turning point for what is often referred to as the country’s Achilles heel. For more than a decade, the lack of reliable power has cut into profit margins and increased operating overheads. Under-investment and mismanagement are generally accepted as being among several primary causes of the power problem. The leadership hopes a privatisation process – now under way for power generation and distribution companies – will remove these obstacles. Despite some last-minute hiccups in the privatisation schedule and challenges still to come, Nigeria’s business community is convinced that a tipping point has been reached in the sector’s reform process, and that the privatisation effort will pay off. This chapter contains interviews with Chinedu Nebo, Minister of Power; and Ute Menikheim, CEO for Africa, Siemens Energy.