With the nation still reeling from the economic effect of the COVID-19 pandemic and gearing up for election campaigns ahead of the 2023 general elections, 2022 is well on the way to being a notable year. 2021 saw the NBS announce that the economy came out of its worst recession in more than thirty-three (33) years, after recording a 0.11% GDP growth in the fourth quarter of 2020, which is projected to grow another 2.9% in 2022. This indicates a slow but steady recovery of the Nigerian economy following the disruptive effects of the pandemic.
Many customary challenges such as the constant illiquidity and the poor distribution and transmission infrastructure still plagued the power sector in 2021, however, some efforts were made towards reversing or curbing these challenges. The infrastructure sector, more generally, continued to be largely defined by the effects of the COVID-19 pandemic. However, some of the projects that were delayed due to the pandemic were either commissioned, commenced or completed in 2021.
In this report, we have considered many of the key market developments which occurred in the power and infrastructure sector in 2021, their impact on the economy, and potential implications for all relevant stakeholders. Based on our longstanding experience in this sector, the report also sets out our expectations for 2022 and our forecast on the major projects we envisage will be embarked upon in the coming year.