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Energy Overview
Reforms are taking centre stage to guarantee gas is the new name of the game
Nigeria is among the World’s leading oil and gas producing countries, with an energy sector contributing - disproportionately - to the nation’s $35 billion economy. But it is also a nation steeped in paradox; an energy-rich country wracked by fuel and power shortages that are preventing infrastructural progress and stifling economic development.
The question on investors’ lips is: can the government of President Umaru Yar’Adua, recently installed in a peaceful power transition, turn the tide of corruption, maladministration, waste and political unrest in his country? For while the potential rewards of investing in the energy sector are great, so are the pitfalls, as some of the oil majors in the troubled Niger Delta have discovered to their cost, where militants are wreaking havoc with oil and gas installations in pursuit of political ends.
As well as being Africa’s biggest oil producer, Nigeria has massive gas reserves and an enormous latent demand for electric power. But 20% of the gas flared worldwide is from Nigerian installations, and the electricity supply industry lies crippled through lack of investment, mismanagement, poor or non-existent maintenance, and an inadequate distribution infrastructure. ...
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