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Policy & Regulation

Nigeria looks to reboot failing power sector

Nigeria’s federal government is turning to old methods to turn around its failing power market, but it will not get far without significant improvements in governance Nigeria’s federal government is turning to old methods to turn around its failing power market, but it will not get far without significant improvements in governance.
By Felix Janvrin 5 September 2019 Middle East & Africa / Policy & Regulation 0 34550
A Nigerian power plant. (Azura Power)

The key issue: Nigerian President Muhammadu Buhari has signed off a major funding package to address power sector liquidity challenges and raise tariffs again.

Interfax analysis: An injection of $1.7 billion of capital – drawn from tax revenues – may help restore some financial stability to Nigeria’s power sector. It could also benefit gas suppliers, given the fuel accounts for over three-quarters of the country’s generation mix. 

The state is also dusting off its Multi-Year Tariff Order, an electricity tariff revision scheme that has been frozen since 2016....