Sunday, September 16, 2012

Electricity in Nigeria: An Example of Post-Colonial Decision Making in Africa


Nigeria’s President, Goodluck Jonathan, came into office in 2010 touting his dedication to rooting out corruption and promoting progress (Economist). Although Jonathan has sacked the country’s anti-corruption chief and emphasized much-needed electricity reform in last year’s election, Jonathan’s promises have unfortunately fallen short (African Leadership Index 2012, Economist).

Nigerian President Goodluck Jonathan. Economist.com
According to Nicolas van de Walle’s essay, “Decision making in Post-Colonial Africa”, state controlled industries flourished throughout Africa after decolonization due to inherent patron-client relationships, dominant political ideologies, and low capacity.  Indeed, nationalization of the energy industry in Nigeria fits van de Walle’s theory.  Nigeria’s power sector has been plagued by corruption. Jonathan’s power minister, Barth Nnaji recently resigned under intense pressure from anti-privatization activists, seeking to block the government’s efforts to unbundle and sell off the Power Holding Company of Nigeria (Economist).

Currently monopolizing the power industry in Nigeria, the PHCN is prone to bloat, frequent power outages, and unidentified “ghost” workers (Economist). While privatization could have promised relief from these problems, investors still fear that the industry is too corrupt to be profitable (Economist). Indeed, while lingering postcolonial nationalization ideologies, corrupt clientelism, and low capacity still exist, privatization of public industries such as Nigeria’s power sector remains a distant hope.
 
 http://www.economist.com/node/21562246


3 comments:

  1. I do not know much about Jonathan Goodluck, however; I wonder if it's necessary to be so hard on him. Yes he's made promises to win the election, like a majority of leaders around the world, and yes he's having trouble fulfilling those promises, again like a majority of leaders around the world. Why is it okay for President Obama to not fulfill his promises but Goodluck cannot? I know that Obama takes some heat for promises that he hasn't filled but it seems like analysts are much harder on African leaders than they are on leaders of developed nations. Could this be because of the authoritarian nature of rule in Africa?

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  2. A major issue of privatization is that the industry is sold to other African business leaders accrued there wealth through corrupt means (such as the state coffer) Could a possible solution to this be selling the industry to an outside Western company? FDI (Foreign Direct Investment) can be very beneficial for poorer countries, and has a snowball effect that once one company is willing to take the risk of investing in a country, others might as well

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  3. Charlotte-

    You do a good job of linking an argument developed to explain processes throughout the 1970s and 1980s to explaining events today. I would only ask why Goodluck Jonathan is so constrained in his decision-making.

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