Nigeria’s power sector attracts high level investment
With the Nigerian economy set to become one of the top 20 largest economies in the world, its banks have recently been showing an extensive appetite for investment in the power sector, and it is expected that more projects in the power sector will receive a level of attention to rival that of the telecoms sector.
The Managing Director of First City Monument Bank, Mr. Ladi Balogun, recently announced that not less than 80 per cent of the money raised in the bank’s public offering would be committed to project finance and communication, most of which is going towards capacity building. “We are heavily involved in power project and road project financing at the moment,” he noted.
Investors are appreciating the level of growth and the good regulatory systems being implemented in communication, power, technology and transportation. The government has unbundled the Power Holding Company of Nigeria into what is now known as 6-1-11. That is: six generating companies, one transmitting company and 11 distribution companies. The goal is to reactivate the power sector. So far, the transmission company has been concessioned to an Indian company and the Egbin power plant is also currently being privatized. Once this has been completed, then the other five plants will be rapidly privatized.
Regulatory announcements — as well as presentations on regulatory practice and projects — will take place at this year’s West African Power Industry Convention 2007 in Abuja, Nigeria, from the 19-21 November 2007 at the Sheraton Abuja & Towers.
Pre-conference seminar on West African Regulation
The pre-conference seminar on the 19 September 2007 will be dedicated to these topical regulatory issues, while day one of the two day conference will tackle other important issues such as the West Africa’s power security, regional and strategic planning, private sector opportunities, finance and investment policies, electricity trade and capacity expansion and IPPs and PPPs. On the 21 September 2007, rural electrification, distribution management, metering and generation will be in the spotlight.