18 October 2011, Sweetcrude, Abuja – The Nigerian government says it plans to partner with private sector investors and the Securities and Exchange Commission (SEC) to raise $50 billion (N8 trillion) for its power sector reform agenda, with 2020 as target date.
The government is currently pursuing an agenda that is expected to see the country generate enough power and distribute to consumers to check the country’s perennial epileptic power supply.
Minister of Power, Prof. Bath Nnaji, who disclosed this in Abuja, appealed to SEC to assist in the reform programme by encouraging interested investors to generate funds.
He explained that the $50 billion required to turn the sector around before the year 2020, would be raised by private investors.
He also disclosed that the ministry is hosting representatives of the United States of America’s Export Import Bank (EXIM) today.
The Minister, who declined to give details of the scheduled transaction with EXIM, explained that the outcome may result in the signing of Memorandum of Understanding (MOU).
According to Nnaji, the bank intends to invest an unspecified amount of money in the power sector.
He explained that the intention of the government is to provide the necessary atmosphere for the
investors to attain the required objections, while advising firms that have not been shortlisted to partner with others, adding that the ministry would be increasing power supply to key economic centres such as Lagos, Kano and Onitsha, among others.
According to the minister, focus will also be in the development of hydro-power, gas and coal, in line with the reform agenda of the ministry, which intends to change waste to power in some remote locations.
He said the government is focused on solving the problem in the sector, noting that most power plants installed 40 years ago have not been maintained.
Nnaji, who spoke at a press conference on the Commemoration of 50 years of Capital Market in Nigeria, explained that the power outage in Nigeria has the greatest loss in Gross Domestic Product (GDP).
In her own submission, the Director-General of Securities and Exchange Commission (SEC), Arunma Oteh, commended all those who had contributed to the growth and development of the market in one way or the other.
She explained that in the next 12 months ending October 31, 2012, the commission plans to share with the world, the enormous potential of Nigeria on sectoral basis, including agriculture, petroleum, power, information and communication technology and the creative industry.