Revenue risks will limit private investment in Nigeria’s power sector, as a lack of payment from customers leads to funding constraints throughout the supply chain.
Insufficient gas transport infrastructure and widespread security risks in the Niger Delta expose gas power plant projects to considerable fuel supply risks.
Despite government efforts to develop a renewables policy, the lack of a robust regulatory and institutional framework, as well as policy insecurity, will mute private investment in Nigeria’s renewables sector over the long term.
Although Nigeria’s power sector is highly liberalised and relies on private capital investment in both electricity distribution and production, we maintain a negative outlook for private investment in the country’s power infrastructure. A culture of non-payment by consumers exposes electricity distributors to significant revenue risks.
Revenue risks will limit private investment in Nigeria's power sector, as a lack of payment from customers leads to funding constraints throughout the supply chain. Insufficient gas transport infrastructure and widespread security risks in the Niger Delta expose gas power plant projects to considerable fuel supply risks. Despite government efforts to develop a renewables policy, |