The Federal Government has stepped up efforts to secure more Foreign Direct Investments (FDIs) in the nation’s power sector, to improve supply situation in the country. Already, the government has begun discussions with some international investors, on the issue. One of such meeting was held yesterday.
Minister of Finance, Olusegun Aganga, told Afrique en Ligue recently, that the Federal Government has had several meetings with local and international investors to discuss ways of improving power supply in the country.“For example, in the power sector, a group of foreign investors will come to talk about their interest to invest in the power sector on June 14th (yesterday). One of the objectives of the meeting is to hear from them on what we need to do to encourage those investments,’ he said.He added that one of the ways of making the environment competitive enough was to listen to key stakeholders in the economy and do what they want, as long as it is legal and in the best interest of Nigerians.
“Some of the measures we have taken, for example, is the survey conducted by the World Economic Forum with their partner - Nigerian Economic Summit Group. We have invited them to come and have a chat with us to go through the details of their findings and see where we are uncompetitive, what we need to do, and of course if it will impact favourable on the economy, we will do it,’ he said.Nigeria, Africa’s most populous nation with 150 million people, generates about 3,000 megawatts of electricity. In contrast, South Africa, with about a third of the population, generates triple what Nigeria is currently generating.
Power generation, distribution and transmission are controlled by the largely ineffective government monopoly - Power Holding Company of Nigeria.Analysts believed that the nation has huge investment potentials in the power sector, but stressed that the country must first repeal unfavourable laws and create a conducive environment for investors to come into the sector.The epileptic power supply situation has been identified as the major problem militating against the country’s economy.Due to the lingering power crisis, some companies have relocated to Ghana, where power is more stable.But Aganga assured Nigerians that the present government was committed to improving the power supply situation before the administration completes its term next year.