This chapter sets out the problems involved in reforming Nigeria’s energy sector. Although Nigeria is one of the largest oil producing countries in the world, it has rampant energy poverty. The country’s energy industry is inefficient and unable to meet its customers’ needs. This has had a negative impact on people’s living standard throughout the country.
There are several major problems with Nigeria’s current electricity framework, including energy poverty, low maintenance of plants, high network losses, a limited availability of natural gas fired power plants, and social barriers.
Energy poverty In 2005, just 40 per cent of Nigerian households had access to electricity. Access varies widely between regions. For example, fewer than 10 per cent of households in the rural northern states of Ligawa, Katsina, Kebbi, Sokoto and Taraba currently have access to grid electricity. In comparison, almost everyone living in the southern Lagos state has access to electricity. About 60 per cent of residents in the southern states of Edo, Ondo, and Osun can access the national grid
