Public disaster and private gain - The proposed privatisation of electricity in Nigeria

Hall, David (2010) Public disaster and private gain - The proposed privatisation of electricity in Nigeria. Working Paper. PSIRU, Greenwich, London, UK.

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Abstract

This report is a critical examination of the proposals to privatise Nigeria’s electricity system. It draws on the most recent reports on energy in Africa and on global research carried out by the PSIRU.
The first part considers whether the government’s plans are supported by empirical evidence. It examines the data on experience elsewhere in Africa and the world on the key issues:
- investment in electricity systems by public and private sector
- the record of attempts at privatisation of distribution companies
- the impact of privatised generation through independent power producers (IPPs)
- policies of other major developing economies on liberalisation and privatisation of the sector
The second part examines the experience so far with attempts to introduce private companies into the electricity sector into Nigeria. These include a series of corruption cases, and extensive government guarantees for private companies. It also looks at the role of the World Bank in supporting guarantees for private companies.
The final section sets out the alternative approach using public finance from oil and gas revenues, which could deliver universal access within five years.

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