Nigerian tobacco industry operates within an oligopolistic market structure, with BAT owning 79% of market brands, which allows for price differentiation across brands. However, price variations are also observed between the same brand both within and across regions, which suggests non-market factors could also contribute to the variability. For instance, the sale of cigarettes in sticks and the significant distance between production hubs and retail points, which generates asymmetric information, transportation cost and opportunity for arbitrage.
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Nigeria Economic Update (Issue 20)
Power sector
analysis shows an increase in power generated by 15.5 percent from 3639.2 megawatt
to a peak of 4196.2 megawatt between April 22, 2016 and April 29, 201612,
albeit a sharp fall to 25.2 megawatts on April 23, 2016 following a system
collapse13. In a bid to attain the targeted 10,000 megawatts by 2019,
the Federal Government is set to complete the ongoing 47 power transmission
projects across the country, which would boost power supply14.
However, the delays in passing the budget into law is a major constraint to the
completion of the projects. Thus government needs to speed-up the passage of
the 2016 budget to provide the funds to complete the projects.
Nigeria Economic Update (Issue 17)
Power sector analysis shows a decline
in power generated by 8.5 percent from a peak of 3,675 mw to 3,362 mw between
April 3, 2016 and April 10, 20169. This record is however still
below 5,074.7 mw- the highest peak ever attained in the country. The declining
power supply which has been attributed to vandalism of pipelines and gas
shortages, has continued to distort economic activities in the country. With
the persistent fall in electricity generation, the possibility of attaining the
targeted 10,000 mw by 201910 seems unattainable. A clear strategy towards
increasing power generation and curbing vandalism is urgently needed.