POLICIES FOR INVESTING IN NIGERIA’S POWER DELIVERY CAPABILITIES

Abstract

This thesis recommends a set of policies for investing in the Nigerian Electricity Supply Industry (NESI). First, it examines the electricity generation profile of the country for the year 2013, and then it identifies the bottlenecks in the electricity supply value chain. It goes on to show that it is inefficient to invest in increasing the country’s available generating capacity before successful elimination of these bottlenecks and therefore, the primary goal of the NESI should be to increase the energy delivered to the customer. Finally, this thesis suggests three investment strategies, which are subsequently applied to different sample realizations of the country’s electricity generation profile. Using the results of this analysis, this thesis ultimately recommends a robust investment policy to the key decision makers of the NESI.