Originally posted by the Voice of America.
Voice of America content is produced by the Voice of America,
a United States federal government-sponsored entity, and is in
the public domain.


Nigeria's Diesel-dependent Economy Braces for Clean-fuel Rules

Reuters

   LAGOS - Nigeria's frenetic commercial capital, Lagos, is plunged into
   darkness several times a day.

   Then its generators roar, and the lights flood back on.

   Nigeria is one of the world's largest economies where businesses rely
   so heavily on diesel-powered generators.

   More than 70% of its firms own or share the units, while government
   data shows generators provide at least 14 gigawatts of power annually,
   dwarfing the 4 gigawatts supplied on average by the country's
   electricity grid.

   The machines guzzle cash and spew pollution, but they are reliable in a
   nation where nearly 80 million people - some 40% of the population -
   have no access to grid power. Now diesel costs could spike globally,
   and many businesses are not prepared.

   Diesel prices are expected to surge as United Nations rules aimed at
   cleaning up international shipping come into effect on Jan. 1, with
   many ships expected to burn distillates instead of dirtier fuel oil.

   Slowing economic growth and nascent trade wars could blunt a price
   spike, and as the shipping industry adapts to the rules, vessels will
   likely consume less diesel. But in the short term their impact could be
   profound.

   Estimates vary widely, but observers warn that prices could surge by
   nearly 20%.

.