| HBS Case Collection
(Revised March 2013)
Privatization of the Power Sector in Nigeria (A)
In spite of its abundant energy resources, Nigeria in 2012 had one of the lowest levels of energy use in the world. Self-generation of power from costly generators was double that of grid-supplied electricity. The history of its power sector was one of inefficient monopolies, missteps, and corruption. But a wholesale change to the market, designed under reformist President Obasanjo and pushed forward by President Jonathan, promised greater efficiencies and investment guided by private-sector principles including widespread privatization, pricing reforms, and reliance on firms to produce and distribute the electricity. Power producer firms on the sideline needed to decide whether they wanted to be a part of this new market.