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Power Sector Reform and Nigeria Development

In: Social Issues

Submitted By gentlesammyo
Words 4096
Pages 17
The Effect of Nigeria Power Sector Reform on Private Sector Investment


Abstract Electricity generation, transmission, and distribution are a ubiquitous and integral part of any modern economy. Aside from providing households with all the conveniences of electric power, a modern and reliable electricity sector contributes to efficient overall economic production and plays an important role in determining Nigeria’s competitive advantage. But in addition to its role of providing a source of energy, the electricity sector also contributes to lifting overall Nigerian economic activity and employment through its capital investments in electricity infrastructure. This report assesses the economic impact of Nigerian power sector reform on private sector investment. The methodology used allowed us to calculate economic multipliers—rules of thumb that link new investment in the sector to overall economic activity. The economic multipliers are valuable for planning because they link each dollar of additional investment by the industry to a given dollar value of overall economic output, job creation, and tax revenues. Moreover, this report links the occupational requirements of these increases to capital spending—highlighting the number of workers and skills to put in place future electricity generation, transmission, and distribution capacity.

The availability of reliable Electric Power to the homes and businesses of our citizens has been one item in our national life that we have approached with so Much hope and yet experienced so much frustration over the past decades. Various regimes, in the distant past, paid little attention to the sector but in the recent decades, subsequent regimes have put in billions of naira to reverse the neglect and mismanagement which has characterised the sector. The...

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