Doing Business in Nigeria
Nigeria requires project developers with the experience and knowledge required to develop commercially viable infrastructure projects.
Contact: trade.nigeria@fco.gov.uk for more information on infrastructure opportunities. [Source: DIT/gov.uk]
Offshore Liquid Natural Gas (LNG)
Nigeria has the ninth-largest gas reserves in the world, and the largest in Africa. Domestic and industrial consumption of gas in Nigeria is below 20%. Because of this, there is a lot of excess gas that needs to be burnt-off for safety reasons (gas flaring). The reason for such a low use of gas is mainly due to poor distribution, storage infrastructure and a flawed pricing system. The government has allocated US $450 million, out of the US $1 billion raised a couple of years ago, for gas infrastructure. It has set aside an additional US $8 billion for improvements in the sector. Opportunities exist for:
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gas gathering
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operating and securing processing facilities and pipelines
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Power
The Nigerian Government recently privatised some of the power sector, which has encouraged investment.
The power sector is split into three subsectors: •
generating companies (GENCOs)
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Transmission Company of Nigeria (TCN)
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Nigeria is in need of additional investment in all these subsectors, but there is particular interest in transmission infrastructure. Without improvements, the current network will not be able to cope with the demands of increased generation. The required investment is estimated to be between US $2.6 billion and US $5 billion. Other opportunities include:
• • •
construction
Contact: trade.nigeria@fco.gov.uk for more information on energy, oil and gas opportunities.
distributing companies (DISCOs)
capital expenditure for recently privatised PHCN assets
equity investment in NIPP projects and PHCN privatised assets embedded generation and independent electricity distribution networks
Contact: trade.nigeria@fco.gov.uk for more information on power opportunities. [Source: DIT/gov.uk]
[Source: DIT/gov.uk]
www.Nigeria.DoingBusinessGuide.co.uk
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