The Federal Government requires $20 billion (about N3.25 trillion) to provide 20,000 megawatts (Mw) of electricity by the year 2020, the Managing Director of KAIROSTS Nigeria Limited, a financial advisory firm, Mr. Olajuwon Olaleye, has said.
Olaleye, who was an aide to the former Minister of Power, Prof Chinedu Nebo, said the sector would receive new impetus when the National Assembly approves the appointment of the Chief Executive Officer of the Nigerian Electricity Regulatory Commission (NERC) and other key officials, adding that the government expects the Senate to expedite actions on the process soon.
Olajuwon in an interview with The Nation said the appointment of officials of the Commission and other agencies in the sector are crucial to the government, as it would impact on the sector positively.
He said Nigeria needs $1million to generate megawatts (Mw) of electricity, which means that the country would be spending $20billion to provide 20,000Mw of electricity.
He said the country was in a critical financial position and that it would need to raise funds through Foreign Direct Investments (FDIs) and signing of agreements with donor agencies in Europe and America to be able to provide 20,000Mw of power and further improve supply.
He quoted the Minister of Finance, Mrs. Kemi Adeosun, as saying at the ongoing World Bank conference in Washington, United States, that the country needed money to finance its power sector and others that were germane to the growth of the economy.
“The Finance Minister, Adeosun, last week in Washington, overtly or covertly expressed the desire of Nigeria to welcome foreign investors and institutions that can raise fund to finance the economy, especially the power sector. This shows that Nigeria needs external funding sources to bring the economy, nay the power sector back to life,’’ he said
In a related development, former President, International Association of Energy Economists (IAEE), Prof Adeola Akinnisiju, said money needed to be injected into the electricity sector to make it viable.
He said power industry survives in developed economies such as the United States, Europe and others because it is well managed and also boasts of good managers.
“When money is properly channelled into the power sector, coupled with good management, the industry will perform optimally and generate enough electricity for the country. The sector is in a comatose because problems exist across the value chain – generation, distribution and transmission,” he said.
Source: The Nation