Corruption and anti-corruption efforts in Nigeria’s electricity sector

This Anti-Corruption Helpdesk brief was produced in response to a query from a U4 Partner Agency. The U4 Helpdesk is operated by Transparency International in collaboration with the U4 Anti-Corruption Resource Centre based at the Chr. Michelsen Institute.

Query

Please provide an overview of corruption and anti-corruption efforts in Nigeria’s electricity sector

Summary

Nigeria’s electricity sector is seriously challenged by low levels of access and inadequate supply leading to regular power outages. This Helpdesk Answer focuses on the role of corruption risks in Nigeria’s electricity sector by providing a description of the sector, identifying the main risks, and giving an overview of policy and regulatory responses. It also identifies corruption risks in Nigeria’s ongoing green energy transition.

Contents

1. Introduction
2. Nigeria’s electricity sector
   1. The development of Nigeria’s electricity sector
   2. The current state of Nigeria’s electricity sector
3. Corruption in Nigeria’s electricity sector
   1. Overview of the main forms of corruption in Nigeria’s electricity sector
   2. Effects of corruption on the electricity sector
   3. Case studies
4. Responses to corruption in Nigeria’s electricity sector
5. Corruption risks in Nigeria’s green transition
6. Annex
7. References

Main points

• Nigeria’s electricity sector has undergone reforms in recent decades and now constitutes a complex ecosystem of different actors.
• Key forms of corruption include political corruption, petty and private-to-private forms of corruption, which are affect the electricity supply chain from the generation to distribution stages.
• Negative effects of corruption in Nigeria’s electricity sector include frequent outages and low levels of access to electricity, the adverse selection of politically connected investors and harm to consumers through demands for bribes.
• In light of the existing risk in the sector and Nigeria’s political and institutional context in general, the ongoing transition to renewable energies in Nigeria is also vulnerable to corruption risks.
• Mitigation strategies can reduce these risks and current initiatives by international donors and partners that support Nigeria’s electricity sector include measures to address corruption risks.

Authors

Miloš Resimić

Reviewed by

Inge Amundsen (U4)

Jamie Bergin (TI)

Date

06/10/2023

Tags