Despite its ambitious reforms in the power sector, Nigeria ranks near the bottom at 108 out of 126 countries surveyed by the World Economic Forum (WEF) in its latest Global Energy Architecture Performance Index Report.
The report ranks countries on the basis of their ability to deliver secure, affordable and sustainable energy across three dimensions of the “energy triangle” – affordability, environmental sustainability, security and access.
The 2016 list was topped by Switzerland followed by Norway and Sweden in the second and third place, respectively.
Others in the top 10 include France (4th), Denmark (5th), Austria (6th), Spain (7th), Colombia (8th), New Zealand (9th) and Uruguay (10th).
However, Nigeria, Africa’s top economy with GDP of $568.51 billion in 2014, ranked 108 behind Congo Republic, which topped Africa’s showing with a ranking of 29.
It should be noted though that Nigeria’s performance this year is an improvement on last year’s 114 ranking.
Congo’s performance is ahead of superpowers, USA and Canada, which came in 48 and 30, respectively.
The next best performance for an African country is Namibia with a ranking of 68. Ghana followed with a rank of 75 while South Africa and Zambia tagged along with rankings of 76 and 77, respectively.
Cameroon (81), Libya (82), Egypt (83), Kenya (91), Sudan ((92), Zimbabwe (95), Botswana (95), Cote de Ivoire (100) and Senegal (105).
African countries that didn’t do as well as Nigeria are Togo (116), Tanzania (119), Ethiopia (120), Benin (121), Eritrea (122) and the failed state of Yemen brought up the rear with a score of 124.
As much as $10 billion in investment is required in Nigeria’s power sector to up the current 7,500 capacity to meet growth targets of 40,000 MW, experts say.
Government plans to increase the supply and use of gas across the country, with a total investment of about $25 billion. Nigeria also hopes to start exporting power beyond the West African region to Central and South African countries – but this hinges on the delivery of Nigeria’s electricity transmission super grid, estimated to cost about $5 billion.
Overall, the levels of investment required to enable energy transition are signi?cant. Nevertheless, a number of challenges still need to be addressed before government’s long-term goals become a near-term reality.
Although a $213 billion intervention fund was provided by the Goodluck Jonathan administration to offset legacy debt in the power industry many of the investors are still cash-strapped, and are seeking funds to carry out the signi?cant upgrade the assets require.
A handy recourse for investors was to pass on the cost to consumers in a recent tariff hike.
According to the repot, “The need to become more energy-efficient, more diverse and less carbon-intensive is especially acute for major emerging economies, making it critical to progress with government responses to these pressures through energy reform.”
Meanwhile, major global economies continued to perform “less well” on the index with the exception of France, which was placed at the 4th place.
Among other major economies, Germany was ranked at the 24th place, while the US was at the 48th rank and Japan was at the 50th rank.
The report prepared in collaboration with Accenture, noted that large emerging economies are pressed both by the need to support economic growth and build resilient and sustainable energy architecture.
World energy production and imports rose by 3,200 million tons of oil equivalent over the last decade, driven by the boom in the Asian economies and led by China and India.
As a result, fuel trade patterns have dramatically changed during this period. In particular, Asia accounted for less than 20 percent of the world fuel trades in 2004, but this figure has sharply risen to 35 percent in 2014, leading to a redistribution of forces and new alliances around the world, it said.