Categorising business constraints in Nigeria

Utilities Power supply, water facilities and their reliability are necessary to conduct business cost-effectively. Nigerian businesses face both a lack of consistent electricity supply and the high cost of generators which is necessitated by this. • Nigerian businesses can anticipate power outages four times more costly and five times more regularly than their Indian and Kenyan counterparts respectively.

Nigerian utilities suffer from chronic under investment. In 2015 the national electricity regulator attempted to raise minimum grid prices in order to encourage investment. This was met with outrage from manufacturers and after much lobbying a new minimum of $0.10 p/kWh was set, half the price originally proposed.

According to Anjeed Innova Group, Nigeria suffers from transmission losses of up to 40% (in the North) due to a combination of the lack of investment, maintenance and vandalism/pilferage.

Leave a Reply