Author: Anton Eberhard and Marek Raciboski
Volume: 58 Issue No:1 Year:2016

Abstract: Africa is short of power and the poor performance of its electricity utilities undermines sustainable development. Over the past two decades, power sector reforms across the continent have sought to restructure utilities and increase private sector participation and competition in an effort to improve technical and commercial efficiencies and attract more investment in generation capacity and widened access to electricity. These reforms have progressed further in Nigeria than elsewhere in Africa and, although they are still a work in progress, the country provides a fascinating case study on the merits of unbundling and private investment, and whether the potential benefits are sustainable. Will the next generation of independent power projects (IPPs) be successful and lead to further investment in much-needed power generation capacity? Will risks be mitigated? Will sector reforms foster financial sustainability? These are some of the questions that will be answered in this article.

JEL classification: L94, O13, P48, Q4