Nigeria Moves to Address Chronic Power Outages - WSJ
Sunday, April 26th, 2009
LAGOS, Nigeria — Officials here are embarking on a costly drive to revamp Nigeria’s power sector as the government struggles to keep the lights on.
After months of delays and political maneuverings, the government of Africa’s largest oil producer approved this month a plan to allocate over $5 billion in emergency funding to repair its power sector. The money is slated to come from the country’s excess crude-oil account. It’s a huge outlay, accounting for some 40% of the rainy-day fund’s current value of $13.5 billion.
The new spending program underscores a realization among top officials about the extent of Nigeria’s power problems. Many analysts consider the lack of reliable power the biggest impediment to economic growth in Nigeria — bigger even than the estimated annual loss of billions of dollars in oil revenues to smuggling and corruption.