Financing Effects of Global Economic Crisis on Energy Investments in Nigeria: A Comparative Analysis of Pre-Crisis and Crisis Era
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Date
2014
Authors
Adeoye, B.W
Atanda, A.A
Journal Title
Journal ISSN
Volume Title
Publisher
University of Lagos Press, Akoka
Abstract
The energy sector is recognised as one of the most crucial real sectors in any economy, considering the dependent nature of other sectors' development on its growth. The emergence of the global financial crisis that engulfed most African nations is one of the greatest threats to energy development in terms of investment and financing options despite the "resource curse" confronting most of the resource-endowed economies like Nigeria. This has motivated this study to examine the impact of the global financial crisis on energy investment and financing in Nigeria between the pre-crisis era (2000-2005) and the crisis era (2006-20/0). The descriptive and graphical analysis employed revealed that between the pre-crisis (2000-2005) and during crisis era (2006-20/0) total energy investment by both private and public sectors declined by 75.2% andthis negatively affected most energy development indicators such as the hydro power generation capacity from Kainji, Jebba and Shiroro; total electricity production per capita; total electric power consumption per capita; and net oil proceeds to national output in Nigeria. Following these findings, the study recommends that joint partnership agreement between the private (both foreign and local institutional investors) and public sectors should be implemented to undertake most of the abandoned energy projects due to lack ofjinance, via a "Build, Operate, and Control (BOC) " system in order to revamp the energy sector development by 2020.
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Journal Articles
Keywords
Investment , Energy Development , Global Financial Crisis , Research Subject Categories::SOCIAL SCIENCES::Other social sciences::Public sector research
Citation
Adeoye, B.W and Atanda, A.A (2014). Financing Effects of Global Economic Crisis on Energy Investments in Nigeria: A Comparative Analysis of Pre-Crisis and Crisis Era. Unilag Journal of Humanities, vol.2(1), 90-112p.