Huge Power Sector Potential, But Risks Abound

BMI View: While we have long believed that Nigeria has al most unmatched power sector growth potential based on strong fundamentals , our optimistic outlook is tempered by the entrenched and considerable risks to doing business in the country. As such , it is enlightening to look at our power sector Risk/Reward Ratings for Nigeria. T o this end, t he r ewards side of the equation continues to be more favourable to Nigeria than the r isks side, with the country's power sector privatisation drive appearing to be gaining traction, despite long-held concerns about the country's operating environment.

Nigeria's overall score reflects the country's healthy economic growth prospects but the still-modest size of the power market - highlighted by recurrent power shortages. Risks are generally high in industry terms and only slightly less significant on the country risks side of the equation - reflecting issues ranging from deep-rooted corruption and persistent insecurity to vested interests and fuel-related bottlenecks.


Rewards Underscore Nigeria's Potential Within SSA
SSA Power Industry Risk/Reward Ratings, Scores Out Of 100

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This article is tagged to:
Sector: Power, Renewables
Geography: Nigeria