Nigerian banks have invested about N750 billion in the power sector since its privatisation by the Federal Government, it was revealed yesterday.
Representative of Nigerian Bankers, and Chief Executive Officer, Diamond Bank Plc, Alex Otti, who confirmed this at the 2014 Nigeria Power Sector Investors Conference in Abuja on Monday stated that the bankers invested their funds discretionarily based on the economic value of the enterprise.
He said “we are ready to lend more. And the reasons we are told is that we can see that the business makes sense. And we can see that the government is committed to what it is saying.” Moreover, the representative of the African Development Bank (AfDB), Mark Chavelo revealed that the bank would provide $380 million to improve private sector participation in the Nigerian power sector. He noted that the bank was also releasing $3 million to support private sector capacity development.
Minister of Power ,Professor Chinedu Nebo, said the conference was to facilitate interaction between new investors and financial institutions to meet the funding needs of the Nigerian power sector which at the moment has a voracious appetite for investment.
According to him, the forum would also provide opportunities for the clarification of government policies as they relate to power sector to facilitate financial investment in the sector.
He spoke on the transmission and governance structure of the emerging electricity market, assuring that the nation’s transition is from a government monopoly to a structured and regulated private sector dominated market. “This market is one that is governed by contracts, regulations and a market where contractual obligations are honored on a pre-agreed and transparent manner,” he stated.
The minister said that as Nigerians await the declaration of the Electricity Transmission Market, the sector was not out of wood following transmission challenges and the vandalization of gas pipelines.