Nigeria has encountered more problems, and this time it does not just pertain to oil. As food and energy prices continue to rise, so does inflation in sub-Saharan Africa’s second-biggest economy.
The Nigerian Bureau of Statistics documented on its website a 12.4% increase in the inflation rate in August while September saw levels peak at 13%. The bureau said the rise was caused by an increase in the price of “some staple food items” in addition to kerosene, gas, and some building materials.
Nigeria is making aggressive efforts to explore the alternative/renewable energy sector. With less than 40% of its population having access to power and even those on the grid constantly facing power outages, the country is trying to privatize the sector in order to bring outside investors. Several factors are currently hindering the progress of Nigeria, but a main issue for investors is market stability.
One attendee at the International Renewable Energy Conference held in Abuja, Nigeria held October 7-9 told Alternative Energy Africa that he was very worried about investing in Nigerian renewables as it seemed many companies have just become involved in the sector and are looking for short-term profits. However, Nigeria’s renewable/alternative potential is getting worldwide attention, particularly from Germany. The sector could be a major recipient of investment capital in upcoming years.