WHAT? $900bn To Fix Energy Sector? – President Jonathan

WHAT? $900bn To Fix Energy
Sector? – President Jonathan
He was represented by Vice-President
Namadi Sambo at the Nigeria power
financing conference in Abuja, added
that the largest chunk of the funds
would have to come from the private
sector.
According to him, in the power sector
alone, $10 billion is needed for
generation and distribution to add
5,000 megawatts to the national grid.
He reiterated his confidence in the
ability of the global community of
private and institutional financiers to
meet up with its request for improved
investment in Nigeria's infrastructure
expansion.
The president explained that the
federal government had long realised
its challenges to sustainably fund
critical national infrastructure projects,
hence its continued discussion with
the private sector to address the
situation.
Jonathan also disclosed that the
government had set up an
intervention fund to further support
the growth of the power sector with
about N300 billion initial deposit.
He however stated that the total size
of the fund, which would be
contributed in partnership with
Development Financial Institutions
(DFIs), was being worked on.
President Jonathan expressed his
conviction in the ability of private and
institutional financiers to extensively
participate in the next phase of
Nigeria's power sector reform
programme, with investments in gas-
to-power initiatives, renewable energy
sources as well as on-grid electricity
generation, transmission and
distribution projects.
"Under our national integrated
national infrastructure master plan, we
need a total of $2.9 trillion for our
infrastructure development efforts in
the next 30 years. The energy sector
alone needs an infusion of about $900
billion during the period.
"Of this, a significant percentage is
expected to come from the private
sector. The power sector alone needs
about $10 billion for CAPEX (capital
expenditure) of generation and
distribution companies in the next few
years to enable us add additional
5,000 megawatts.
"Similarly, our transmission network
continues to attract serious attention.
The transmission grid requires an
annual investment of about $1.5
billion for the next five years to ensure
its reliability and stability. The
Transmission Company of Nigeria
(TCN) has commenced the aggressive
implementation of the expansion
blueprint funded by a mix of
appropriation and funds from financial
and multilateral institutions," he
explained.
The president further said: "It is the
belief of this government that the
private sector is suitable to effectively
manage and attract the huge capital
required for constant and affordable
power to all Nigerians.
"This confidence on the Nigerian
private sector stems from a track
record of resilience, vibrancy, foresight
and courage. In virtually all sectors of
our national economy, this great show
of enterprise, creativity and patriotism
by our business community has kept
our national economy strong, versatile
and forward looking.