The Managing Director of KAIROSTS Nigeria Limited, a financial advisory firm, Mr. Olajuwon Olaleye, has said the federal government requires $20 billion (about N3.25 trillion) to generate 20,000 megawatts (Mw) of electricity by the year 2020
Olaleye, who was an aide to the former Minister of Power, Prof Chinedu Nebo, said the power sector would receive new boost when the National Assembly approves the appointment of the Chief Executive Officer of the Nigerian Electricity Regulatory Commission (NERC) and other key officials, adding that the government expects the Senate to expedite actions on the process soon.
He disclosed this in an interview with The Nation said the appointment of officials of the Commission and other agencies in the sector are crucial to the government, as it would impact on the sector positively.
Olaleye said Nigeria needs $1million to generate megawatts (Mw) of electricity, which means that the country would be spending $20billion to provide 20,000Mw of electricity.
He said the country was in a critical financial position and that it would need to raise funds through Foreign Direct Investments (FDIs) and signing of agreements with donor agencies in Europe and America to be able to provide 20,000Mw of power and further improve supply
His words, “There is no doubt that Nigeria is in a very critical situation financially and would need to partner donor agencies and foreign investors in order to finance key infrastructural projects in the petroleum and power sectors. Once this is done, activities would be galvanised in areas such as power generation, distribution and transmission.”