NIGERIA NEEDS $10BN IN PPP INVESTMENT TO REVAMP POWER SECTOR – MINISTER
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The Federal Government says it needs 10 billion dollars of public-private partnership investment in the power sector in the next five to 10 years to achieve a 24-hour power supply.
The Minister of Power, Mr Adebayo Adelabu, disclosed this when the Director-General, Infrastructure Concession Regulatory Commission (ICRC), Dr Jobson Ewalefoh, paid him a courtesy visit.
A statement on the visit was made available to the News Agency of Nigeria (NAN) on Wednesday in Abuja by Mr Ifeanyi Nwoko, Acting Head, Media and Publicity, ICRC.
In the statement, Adelabu said that the government alone needed more than 10 billion dollars when other critical sectors needed funding.
“Government cannot do it alone; this is why we have to look for organised private sector funding while still retaining government interest and ownership.
“That is where ICRC comes in. We need to do this in collaboration with the private sector, and the best way is through concession,’’ he said.
Earlier, Ewalefoh said it had become imperative to seek private sector input through Public Private Partnership to improve the power sector.
He said given the importance of power to the economic development of the nation, optimising performance of existing infrastructure as well as funding new ones was imperative.
The ICRC boss said that the challenges in the sector were many and had gone beyond funding by the Federal Government alone.
According to him, with interagency collaboration and partnership with the private sector, the limitations could be addressed.
The D-G said that through its regulatory processes, the ICRC could midwife private sector investment to raise part of the 10 billion dollars needed in the sector to provide regular electricity.
He added that the ICRC could also attract more foreign direct investment to other sectors and ultimately grow the economy.
“Revamping the power sector requires planning; it involves investments, and it takes time. So, we need to collaborate to solve the issues in this sector.
“The investment required in the power sector is very huge, and the government cannot fund it alone, so we have to leverage the financing capacity of the private sector.
”That is why the ICRC was set up to regulate this leverage,” he said.
Ewalefoh commended the minister for his vast knowledge of the sector, noting that President Bola Tinubu’s decision on his choice was commendable.
He recalled that in a bid to accelerate PPP investment as directed by the President, the commission issued a 6-point policy direction that streamlined the process of PPP service delivery.
The D-G said that the commission was not relenting or compromising on its stringent regulatory function to forestall contingent liabilities or unnecessary delays by companies that lacked the requisite capacity. (NAN)
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