Reforming the energy sector in Africa: The case study of Nigeria

This brief first discusses the deregulation trends in the energy sector in Africa and then focuses on the case study of Nigeria. The key message is that a holistic approach to liberalizing the energy sector is needed and removing fuel subsidies is just one element of a broader reform agenda. These reforms should also encompass improvem ents in regulatory framework, increase transparency and ensure visible results to the wider public. It is equally important to remove fuel subsidies gradually and ideally when there is strong economic growth, so that consumers and businesses can adapt their fuel consumption overtime without major economic disruptions. Such a comprehensive approach is critical in the post “Arab Spring” world which demonstrated that citizens can claim their economic

and political destiny if reforms are considered unfair.