The Minister of Power, Works and Housing, Mr. Babatunde Fashola said that the returns on investments in Nigeria’s electricity market are much more than the challenges it presents to investors and operators already in it and those willing to come in.
Fashola disclosed this at the Power Nigeria Exhibition in Lagos.
He said the investment opportunities which exist in the market were propelled by its transition from a government-controlled and operated sector for 63 years to a government-regulated but private sector operated sector in the last three years.
The minister said the power sector and Nigeria remains an investment destination that no serious investor would want to ignore, adding that there are challenges which high returns on investment clearly outweigh.
In a statement from his senior communications aide, Mr. Hakeem Bello in Abuja, he called on the private sector to embrace the investment opportunities offered by the power market.
Fashola said, “As Mr. President recently remarked in the United States, this is an investment destination that the rational investors cannot ignore. Are there challenges? Yes, there are. Those are the risks of entrepreneurship. But the opportunities and the return on investment clearly outweigh the challenges.”
He noted that one of the challenges in the sector was liquidity which he said the government was laying down adequate steps to address.
According to him, government would provide an environment that would enable the private sector thrive, deepen its investment and contribute to its stock of incremental power.
He said, “Our policies seek to ensure that investors who play by the rules will recover their investments and a decent profit, while we protect consumers from people who want to profiteer.”