The Federal Government of Nigeria has invited World Bank, International Monetary Fund (IMF), African Development Bank (AfDB), United States Agency for International Development (USAID) and others, which have huge portfolios and interests, to invest in energy.
The government is seeking investment in power generation, distribution and transmission.
Mr. Babatunde Fashola, the Minister of Power, Works and Housing, made the disclosure during a panel discussion at the 5th European Union- Nigeria Business Forum at the Eko Hotel, Lagos.
According to him, the funding gap in the sector was wide and required investments to improve electricity supply and the economy.
Fashola in his keynote address entitled ‘’Financing the power sector’’, said the sector has huge investible propositions, which only bigger corporations have the capacity to meet, adding that the sector has the capacity to provide returns on investment for any company that invests in it.
The Minister said the government was striving to provide an enabling environment through its policies to guarantee adequate returns on investment.
He said: “Without doubt, bad environment is a problem, which the government is trying to address. It is obvious that the power sector has huge potential, which can only be realised with the right environment.
He added, “When one considers that the sector is broken into 11 power distribution companies (DisCos) and six power generation companies (GenCos), one would see that there is huge potential in the industry. This is the reason the Federal Government is asking investors, especially global financial institutions, to invest in the sector.”
The Head, Economic Cooperation and Energy Section, European Union, Mr. Juan Casla, said power sector was crucial to the growth of any nation, urging the Federal Government to put in place measures that would foster its growth.