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Power: Nigeria to get $2.1bn from US

By on August 14, 2014

The country will get 30 per cent of the $7bn that the United States earmarked last year to boost energy in Africa, the Federal Government has revealed.

This means Nigeria will get $2.1bn from the Power Africa initiative once the US commences its implementation.

The US President, Barack Obama, in June last year pledged $7bn during a trip to South Africa to help to combat frequent power blackouts in sub-Saharan Africa.

Funds from the initiative will be distributed over the next five years.

Speaking at the ongoing National Council on Power conference in Abuja on Tuesday, the Permanent Secretary, Federal Ministry of Power, Ambassador Godknows Igali, said from the recent US-African Leaders’ Summit, it was apparent that Nigeria would attract about 30 per cent of the funds earmarked for the initiative.

He said, “During our discussions in the US, it was very clear that Nigeria is the destination of choice for investors because they are aware that about 4,000 megawatts of power will be grossly inadequate for a country of about 170 million people.

“So, the interest is huge and they are willing to come, but we must also show that we are ready to receive them by providing the needed environment for investors to put their money down.”

Before disclosing the percentage of Nigeria’s share of the funds, Igali had expressed dissatisfaction with the conduct of states in terms of providing land for power projects.

He noted that most states were very hostile to investors because of community-related issues.

According to him, state governments must do more to address cases of community interference in the work of contractors in order to attract more power projects to their states.

The permanent secretary explained that the Federal Government’s efforts at attracting foreign direct investments into the power sector were yielding results and warned that only states that addressed issues of ease of access to land and youth restiveness would be better positioned.

Igali said, “While some states are doing well, others are not; but at the federal level, we are ready to partner the states to ensure that the investments needed to bring electricity to Nigerians are made.

“Certain states will get more because their governments are creating the environment required to attract investments; and we encourage others to also make the same effort especially by controlling the activities of youths in the communities.”

In another development, the Minister of State for Power, Mr. Mohammed Wakil, has warned agencies under the ministry against infighting and confrontation.

He said only collaboration and positive interface would speed up the attainment of the goals of the power sector reforms.

Wakil said this while inaugurating the technical committee on the establishment of the Electricity Management Services Limited, according to a statement by the ministry.

“Inter agency dispute has negative impact on the implementation and achievement of government’s goals. We must never engage in disputes to the extent of engaging in press war,” he said.

The EMSL and the Nigerian Electricity Regulatory Commission have been at loggerheads as to who is statutorily authorised to regulate some aspects of the power sector reforms.

Wakil told the committee members, “You are to ensure that all areas of disputation between the EMSL and NERC are resolved with respect to the bill before the National Assembly. Your committee is to provide options and recommendations on how to ensure synergy between the two agencies.”

 

[Punch]