The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Power reform puts Nigeria at crossroads

Bond markets would suggest Nigeria’s future is assured. Progress has indeed been made in banking, sovereign finances and power-sector reform. But big challenges remain, as this autumn’s electricity privatizations amply illustrate.

More than ever before, Nigeria stands at a crossroads. From here, three possible futures are visible for a country set to become, at some point in late 2013, Africa’s largest economy.

In future one, a reform process, set in place by progressive president Goodluck Jonathan, endures. Over the next few decades, Nigeria is transformed from a fast-growing emerging market with outsized oil reserves into Africa’s economic powerhouse.

In the second future, the reform process fizzles out, leaving Nigeria to revert to what has in the past seemed to be its natural state: a country riven and constrained by petty politics, corruption and global investor indifference.

The final outcome is probably the most unappetizing, but one that, given the state of current power-sector reforms, might yet come to pass. In this future, the reform process holds sway, but it succeeds only in enriching an elite few at the expense of the country’s vast, impoverished populace. A two-speed Nigeria emerges, superficially powerful yet institutionally brittle: an economic oligarchy not unlike Russia in the 1990s.

Superficially at least, the country and its reform process appear to be doing just fine. Nigeria’s economy is set to grow by about 7.1%

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree