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Shonekan Promotes Govt’s Role in Power Sector
- By Uchenna Kalu
- Published September 20th, 2009
- EnergyWorld
- Unrated
CHIEF Ernest Shonekan, former head of interim national government and chairman of the Infrastructure Concession and Regulatory Commission (ICRC) has advocated the need for government to continue to play a central role in the power sector.
Speaking at a power conference in Lagos last week, the former head of state said the role of electric power is so central to the national economic growth to be left solely to the private sector.
“Given the central role of electric power, government must continue to play a central role while not being the sole source of funding”.
He decries the funding problems in the sector, stating the inadequacy of available financing options in the sector.
“The actual quantum of funds available for power infrastructure is uncertain. Tenure of available financing from Nigerian banks for power projects are in the neighbourhood of 7 years. Other options such as bonds are not available”.
“Over the past 10 years, the federal government has made investments in the excess of $10billion. The result has been clearly disappointing, a situation, which leaves over 90 per cent of, Nigerians without access to power. This gap must be filled” he told delegates.
“Nigeria is in the 71st position in the world energy use per capita. The ICRC was a very much welcome development. It is on firm resolution in ICRC to increase interactions with operators”. Shonekan stressed the need for comprehensive sector reforms adding that this was condition for attracting private investments.
“There is the need for comprehensive sector reforms. Implementing sector reforms is a key prerequisite in attracting private participation. This is especially true for the power sector. While our country has made progress in the past five years, there is a greater need for consistency, encouraging the emergence of a robust market”.
Speaking at a power conference in Lagos last week, the former head of state said the role of electric power is so central to the national economic growth to be left solely to the private sector.
“Given the central role of electric power, government must continue to play a central role while not being the sole source of funding”.
He decries the funding problems in the sector, stating the inadequacy of available financing options in the sector.
“The actual quantum of funds available for power infrastructure is uncertain. Tenure of available financing from Nigerian banks for power projects are in the neighbourhood of 7 years. Other options such as bonds are not available”.
“Over the past 10 years, the federal government has made investments in the excess of $10billion. The result has been clearly disappointing, a situation, which leaves over 90 per cent of, Nigerians without access to power. This gap must be filled” he told delegates.
“Nigeria is in the 71st position in the world energy use per capita. The ICRC was a very much welcome development. It is on firm resolution in ICRC to increase interactions with operators”. Shonekan stressed the need for comprehensive sector reforms adding that this was condition for attracting private investments.
“There is the need for comprehensive sector reforms. Implementing sector reforms is a key prerequisite in attracting private participation. This is especially true for the power sector. While our country has made progress in the past five years, there is a greater need for consistency, encouraging the emergence of a robust market”.
