Nigeria has more than 13,000MW of installed electricity generation capacity. Only 7,500MW is available and less than 4,000MW is dispatched to the grid each day. Markets were unchanged by the announcement but this could potentially attract more investors to the country where the bonds (10Y) have appreciated 16.7% to 11.04 in the past 2 years. Partnership with German engineering firm Siemens will modernize the existing network before enlarging it to a point where the country can sustainably produce and distribute 25,000MW. Positively for investors in Nigeria, to ensure fairness and transparency President Buhari has engaged the International Finance Corporation to oversee the transaction.

Could this be a positive indicator for growth in the Nigerian economy? Discuss…

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