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Nigerian banks invest N750bn to develop power sector

By BusinessNews Staff on February 11, 2014

Deposit Money Banks in Nigeria have invested over N750bn in the country’s power sector since the commencement of the privatisation exercise of the industry.

The DMBs also announced their readiness to plough more funds into the sector in order to bring to an end days of power cuts across many parts of the country.

The banks’ resolve came as the Federal Government wooed both local and international investors to invest in Nigeria’s power sector, stressing that the country needed a total of $2.9tr for its infrastructure developmental efforts in the next 30 years.

Speaking on behalf of the banks at the Nigeria Power Sector Investors Conference, held at the banquet hall of the Presidential Villa in Abuja on Monday, the Group Managing Director/Chief Executive Officer, Diamond Bank Plc, Dr. Alex Otti, described the Federal Government’s determination to improve electricity supply as good motivation to invest in the sector.

He said, “On behalf of local banks, the last time I checked, the banking industry has invested well over N750bn in the power sector and we are ready to do more. This was as at 2013 and we are willing to do more because we can see commitment on the part of government to transform the sector.”

Otti expressed satisfaction with the level of improvement in the sector and assured investors that the power industry was worth investing in.

In his address, President Goodluck Jonathan, said of the $2.9trn needed for infrastructure development in Nigeria in the next 30 years, a total of $900bn is needed by the energy sector during this period.

Jonathan, who was represented by Nigeria’s Vice President, Mr. Nemadi Sambo, explained that a significant percentage of this sum was expected to come from the private sector.

He said, “The power sector alone needs about $10bn for CAPEX of generation and distribution companies in the next few years in enabling us add additional 5,000megawatts.

“Similarly, our transmission network continues to attract serious attention. The transmission grid requires an annual investment of about $1.5bn for the next five years to ensure its reliability and stability. The Transmission Company of Nigeria has commenced the aggressive implementation of the expansion blueprint funded by a mix of appropriation and funds from financial and multilateral institutions.”

[Punch]

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