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MAKING A CASE FOR INVESTING IN
NIGERIAN PROJECTS: RISKS & MITIGANTS
Effective regulator/regulation
-This is important for an emerging market like Nigeria because the
ineffectiveness of the regulator could affect the delivery of return
on investments.
- Examples: the take-off of the telecommunications industry in
Nigeria was phenomenal because the NCC was effective and able
to promulgate effective regulations pursuant to its powers under
the law which established it. This model has been sustained in this
sector.
-On the contrary, the (non-public owned) Nigerian power sector
commenced with a group of technocrats that had the ability to
support effective regulators but who were summarily removed
before the establishment of a sound regulatory environment.
This has caused the sector a major setback and, together with
other factors, lack of investor confidence in this sector.
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