Govt seeks single-digit interest loans for power firms


22 September 2015, Abuja – The Federal Government wants the Central Bank of Nigeria and the National Pension Commission to provide funds at single-digit interest rates for the financing of electricity projects across the country, the Permanent Secretary, Federal Ministry of Power, Dr. Godknows Igali, has said.

*Ambassador Godknows Igali.

Dr. Godknows Igali

According to Igali, the government has already commenced talks with the two financial institutions with the aim of getting affordable loans for investors in the power sector in order to boost the supply of electricity.

The permanent secretary, who currently supervises activities in the power sector, disclosed this at an interactive workshop on ‘Interpreting and understanding the market rules’ for the electricity market participants in Abuja on Monday. The workshop was organised by Infranet Energy Services.

A statement issued by the System/Market Operation Department of the Transmission Company of Nigeria quoted Igali as assuring the market participants that “the ministry is discussing with relevant federal agencies such as the CBN and PenCom for the purpose of providing a pool of funds that can be accessed at single-digit to ramp up operations and service delivery.”

He also said that bi-lateral discussions were ongoing with several international agencies on how to build flared-gas power plants, micro-grids and other renewable energy plants in order to provide more power for Nigerians.

Igali charged the electricity market participants to imbibe best business practices, stressing that the sector was still going through a learning curve.

The permanent secretary expressed confidence that the current electricity challenges in the country would be surmounted with time, adding that the aim of privatising the sector would be achieved to position Nigeria on the path to sustainable industrial development.

The Managing Director/Chief Executive Officer, System/Market Operation, Mrs. Ngozi Osuhor, said the workshop was organised to enhance the understanding of the market rules and grid codes among industry players so as to achieve efficient and effective delivery of services.

She stated that through the workshop, the department was performing one of its core responsibilities of providing education and capacity building for participants in the electricity business.

Similar workshops, Osuhor said, would be held on regular basis as a platform to continue the interaction and exchange of industry and operational knowledge among market participants.

The System/Market Operation CEO stated that decisions on the way forward reached at the end of deliberations at the event would be sent to the electricity regulator for necessary follow-up.



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