A survey put together by PricewaterhouseCoopers (PwC) has predicted that ageing infrastructure is expected to significantly reduce in the next five years (2020).
Quoting Chief Executive Officers (CEOs) of power and utilities companies in Nigeria, the survey explained that Security of supply is also expected to significantly reduce within the period.
However, the CEOs identified tariff, badly maintained infrastructure, reforms among others as challenges that may confront the sector if urgent steps are not taken to address them.
The report titled: “PwC Africa Power and Utilities Sector Survey: A Nigerian Perspective”, said energy policy makers are recognized for keeping energy prices too low for utilities to enable sufficient investments.
According to the survey, more than half of the Nigerian respondents indicated that the energy policy makers have produced a significant amount of policy uncertainty.
Making reference to collaboration with the industry to promote investments and protect customers, the survey revealed that energy policy makers in Nigeria have performed low at 38 per cent compared to other peers in the African survey at 63 per cent.
Part of the report read: “Improved government support in the form of guarantees are required in order to attract investment as the majority of survey participants believe that the local banking system does not have sufficient liquidity. The vast majority however agreed that there is sufficient transparency in the procurement of new power capacity in the country”.