Dolapo Kukoyi, a partner at Detail Commercial Solicitors in Lagos has decried Nigerian financial firms’ lack of support of energy projects as it was hindering the provision of power.
Kukoyi, also said that currently, the Nigeria Bulk Electricity Trader and other government entities were not willing to provide the guarantees which investors would still require in the early days whilst liquidity issues of the distribution companies are being resolved.
She said another limitation that hinders the bankability of power projects was the untested operationalisation of the sector industry agreements. The sector industry agreements, she said, had been executed pre-privatization with the incumbent management of the privatised Power Holding Company of Nigeria generation and distribution companies. She said that there was therefore no track record to show how the contracts actually work.