The potential of small and medium enterprises: Off-grid solutions to corruption in Nigeria’s electricity sector

Publication type: Briefing Paper

Country: Nigeria

Author(s): Pallavi Roy

ACE Strategies: Aligning Incentives

Keywords: Electricity


This briefing outlines the complex story of corruption and inefficiencies that straddles the entire electricity value chain – generation, transmission and distribution – in Nigeria. It puts forward a disaggregated and embedded solution as a means to improve productive outcomes by increasing the number of organisations that will demand enforcement in their own interest.

Drawing on research conducted among functioning SME clusters in Aba, Nnewi and Onitsha, we recommend an anti-corruption solution of disaggregated and embedded generation that is less expensive than the costs currently incurred to source electricity informally, while providing adequate electricity supply. The likelihood of insider support should also ensure that the policy is self-sustaining and therefore self-enforcing.

Read the Working Paper.