Abuja — Nigeria's Ministry of Budget and National Planning, in collaboration with the Economic Commission for Africa's Sub-Regional Office for West Africa, on Friday launched the West African nation's 2016 Country Profile.
The Country Profile contains country-specific policy analyses and recommendations for Nigeria's economic transformation, with an emphasis being placed on the need for the country to address its energy issues as it seek to structurally transform its economy.
Emphasis is also put on promoting sustainable growth and social development, facilitating development planning and economic governance.
"The Country Profile provides analysis and recommendations specific to Nigeria as it continues in its drive towards structural transformation that will foster sustainable growth and social development, as well as its performance in areas such as regional integration and the fight against social exclusion," said Dimitri Sanga, Director of ECA's Sub-Regional Office for West Africa.
"Of major importance is the energy issue, which is not only an issue in Nigeria but the region and Africa as a whole. We cannot envisage the structural transformation of African economies without addressing the energy issue," he added.
"For example, hydro-electricity provides an important source of energy, largely unexploited on the continent as only 5 percent of the Africa's hydro-electric potential is exploited. In our efforts to achieve structural change in our economies, the energy issue is well ranked at the top of the process. Angola, Cameroon, Democratic Republic of the Congo, Ethiopia, Guinea, Nigeria and Sudan have considerable potential in this area, which must be harnessed not only for national economies but also for Africa in general."
According to this second generation Country Profile, electricity shortages in Nigeria, which had an average of 32.8 power failures per month in 2015, are a major problem for the country's economy as available infrastructure fails to meet current demand.
Recent privatization efforts within the sector have, however, improved the situation.
"Access to a sustainable and affordable energy is important for the creation of added value during the transformation of products into final consumer goods. Beyond its strategic role to foster industrial development, an effective electrical system is fundamental to social development, considering that it affects all aspects of human life. Access to reliable electricity improves communication, favors scientific and technological innovation, and increases the standard of living of individuals," reads part of the Country Profile.
Accelerating Nigeria's economic transformation, the report adds, requires stimulating competitiveness, increasing productivity and strengthening local production capacity.
To achieve this, the country must reverse more than two decades of deficiencies in the fields of electricity generation, transmission and distribution in particular.
"For such, it must redouble its efforts to establish a market-oriented policy to promote a secure and competitive energy supply at affordable prices and policies to enhance the reliability and sustainability of the electricity system, while encouraging the acquisition of equipment and technologies."
The Country Profile adds a clear regulatory framework is needed to attract private investment in Nigeria; to harmonize the series of measures on the energy supply development with other policies, including transport, employment and education, as well as to continue to invest in the expansion of the energy network while ensuring its regular maintenance.
The report urges Nigeria to continue to invest in a diversified energy package through incentive policies that focus on non-fossil energy sources such as solar, wind and hydro.
The issue of electricity pricing and indiscriminate use of subsidies, the Country Profile urges, must be addressed to reduce operating costs in the value chain and the economy as a whole.
The launch, on the sidelines of the High Level Policy Dialogue on development planning in Africa, was attended by the continent's top planners, representatives from the Nigerian government, civil society, academia and the media.
