West Africa needs US$25 billion investment over the next 10 years to ensure uninterrupted power generation, Minister of Power, Prof. Chinedu Nebo said on Tuesday at a conference in Lagos, the Nigerian Tribune reported.
Speaking at the West African Power Industry Convention (WAPIC), Nebo said there was a need to attract investment to improve the national grid, local media reported.
‘There is the need to invest and develop regional grid through effective power generation across the West African region…
Nigeria’s economic performance is one of the most robust in Africa and an adequate power supply is a pre-requisite for a stable economy’, he said.
The minster highlighted that the Gross Domestic Product (GDP) growth for Nigeria in 2013 was 6.81 percent, almost double than the world average of 3.5 percent, local media reported.
‘Today, Nigeria is an attractive destination for Foreign Direct Investment (FDI). In the last three years, Nigeria has attracted over 10 per cent of the total FDI to Africa totalling over $20billion…
This performance is driven by favourable political, economic and demographic realities’, he said.
The whole energy mix is being considered where financial plans are being discussed between the ministries of Power and Petroleum and the Central Bank of Nigeria who are also addressing the issues around gas. The minister said that without adequate funding the result is poor generation and operations, local media reported.
Mr Tony Elumelu, chairman of Heirs Holding addressed the need for the sector to move towards privatisation, local media reported.
There have been significant improvements in other countries that have made this transition and Elumelu said that the Federal Government should apply this to the Transmission Company of Nigeria (TCN), local media reported.
‘Power sector improvement should be a main focus of all West African countries and African governments should design a way to improve the power sector in the sub region’, he said.