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Why SDG implementation is non-negotiable for African countries – Elumelu

By on October 19, 2015

The Chairman of Heirs Holdings Foundation, Mr. Tony Elumelu, who was a panelist at one of the discussions,  was engaged by Nigerian media representatives including Festus Akanbi at the IMF-World Bank meetings

What lessons can Africa learn from this meeting?

There is a lot for Africa to learn from the meeting. Speaking about the panel where I spoke, you will notice there are three Africans at the panel-the President of African Development Bank, Akinwunmi Adesina, and I and the finance minister of Rwanda. That shows that Africans are now being recognised when global issues are being discussed but specifically speaking for Africa, the SDG is very applicable and essential and it’s very necessary for us in Africa. Poverty is a serious issue. Access to electricity, power is extremely important. We can’t make progress as a continent if we don’t face this issue. The issue of jobs is very important for Africa so also the issue of inequality. Resolving inequality is an issue we must tackle in the continent. I think this is very important for Africa.

Another important lesson is how we can go about implementing SDG so that in 15 years’ time, we will be happy with ourselves. I was so impressed when the minister from Rwanda said we must be serious with SDG and that we should make sure we achieve it. Indeed, we don’t need anyone to tell us that electricity is very important for us as a continent and the SDG has now created more awareness about it, so let us pursue it. I will love to see our continent, carve a mechanism for monitoring the implementation of the SDG. I want our continent, maybe under the African Union platform to engage the African private sector leaders. For this SDG to succeed, we need the private sector’s involvement. We need government, we need donor agencies, all of us should work together to succeed. So, the African political leaders should bring us together. Let’s formulate an agenda. If the world says this will be achieved in 15 years, we can give ourselves 10 years and put more action and begin to work towards it. It’s plenty of work but I think we can do it.

Can you tell us the cost of implementing SDG in Africa?

We should not see SDG as cost, we should rather see it as investment opportunities and what we need to do is to prioritise these investments especially those very important like power. Power will unlock other investment opportunities and let’s create the right investment environment that will make that to work. Government does not have the kind of resources required to generate the kind of electricity we need on the continent but government can create the enabling environment for the private sector to provide the capital required, the innovation and the ability to manage this role.

Can you talk about the funding mechanism for SDG? Any assistance from donor  agencies?

The SDG is estimated to cost about $170 trillion. That’s a lot of money. That is about 15 per cent of the global GDP every year but what is important is the need for us to see it as investment. If you look at access to electricity, instead of looking at it hypothetically that it will cost something like $100 billion for African to have electricity, let us not look at it from the cost perspective, let us look at it as investment opportunity and so instead of African government looking for money to fund it, let them create an environment that will attract capital into it. In that way, you will achieve the goal without necessarily putting money. Let us look at healthcare for instance, instead of looking at healthcare provision as a cost, let us take it as an investment opportunity. We should attract people into health space.
In view of the volatility in oil price and the dip in revenue in Nigeria, what are your expectations?

We should just diversify but the truth is that it is not only Nigeria that is going through this experience. It is a global issue. We should diversify and look at the leakages in the economy and block those leakages and when we can extract more revenue. I like what the president is doing by asking revenue collecting agencies to bring all the revenues into one centre, let’s see how we can block the leakages we have in the system. We should also let Nigerians know that there is no quick fix. Where we are now, it will take us at least three years to come along. It is only good to say this so that people will not expect miracles but I hope government can do something on power so that even as people are struggling in other areas let us have power. This is because if we have power, it will help to change the economy.

What is your experience in Nigeria’s power sector as an investor?

My experience in the power sector is not very good. We were very enthusiastic and very happy going to power sector and my target was to generate 2,500 megawatts but I have slowed down because of so many reasons. One, the tariff is non-cost reflective. They have increased gas price but what they pay me for generating power is the same old tariff. Exchange rate has gone up and meanwhile, I still earn the same revenue. I hope as the government settles in, there will be a review but right now it is not a good story. Today, my plant has the capacity to generate more than we are generating. They tell you to reduce your capacity. The country is in dire need of electricity, why will you tell me to reduce what I have planned to produce?  The excuse was that the transmission line cannot carry heavy load. I get daily reports from our plant.

They have the capacity to generate 600 megawatts but they are told to generate 300. Although, there has been some improvement since the present administration came in. I think the vandalisation has gone down. These issues don’t encourage investors. That is why I’m saying that let not look at the cost of achieving SDG, let’s look at the ability to create the right environment that will enable private sector come into that space.

Do you support the call for the privatisation of the Transmission Line?
I think the present administration during the pre-election campaign did say it was going to privatise transmission line. I support the privatization of transmission line or its commercialization because the way it is now, it cannot help us achieve power sufficiency in Nigeria.

 

[ThisDay]