US firm injects $130m into Nigeria’s power sector

power-transmission-station216 December 2013, Lagos — American Capital Energy & Infrastructure (ACEI) is committed to investing up to $130 million in the Azura-Edo power project in the country.

Azura will utilise ACEI’s investment to fund the first and second phases of the Azura-Edo power project, pursue its greenfield development pipeline and future acquisitions, expand its team, and grow its construction and operational capabilities.

Speaking in Lagos, Mr. Paul Hanrahan, Chief Executive Officer and co-founder of ACEI, described his company’s investment in Azura as a good example of the type of investment in high growth platforms in the energy infrastructure space that it is targeting.

“Our investment is in recognition of the significant progress made by the Azura co-founders on the first phase of the Azura-Edo power project, the growth opportunities in the Nigerian and West African markets, and our confidence in the Federal Government of Nigeria’s power sector reform programme.”

Lisa Pinsley, ACEI Director of Africa Investments explained that the company is investing in the leading independent power producer platform in the key African market in line with its Power Africa efforts.

“Nigeria is the most populous country in Africa with one of the highest growth rates in the world. With a current population of over 170 million, the seventh largest in the world, Nigeria’s expanding economy suffers from a lack of power infrastructure. The United Nations estimates that Nigeria’s population will reach 230 million within the next 20 years, and the total grid-based power generation capacity must rise ten-fold to 40,000 megawatts to meet the demand. Azura is, and will continue to be, a key driver in this growth in capacity,” Pinsley said.

Mr Sundeep Bahanda, co-founder of Amaya Capital Partners, the lead sponsors of Azura, and Dr David Ladipo, Managing Director of Azura assured ACEI’s investment would exert a transformative impact on business and accelerate Azura’s drive to create a flagship, multi-asset, power generation company. They said the development of Nigeria’s electricity supply industry is a vast undertaking that requires a long-term commitment from all parties.

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