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Tuesday, September 24, 2013

Banking sector’s 70% funding and privatisation: The journey so far

CBN Governor, Lamido Sanusi
THERE is no doubt that several unsuccessful attempts at privatising the power sector in Nigeria have been recorded, but stakeholders may have agreed to the fact that there will be light at the end of the tunnel, even with great optimism that uninterrupted power supply may be possible one day, even though the desired change may not manifest at the blink on an eye.
  This optimism may have been deeply rooted in the moves made by the nation’s apex financial institution- the Central Bank of Nigeria (CBN) and the consortia of Nigerian Banks, which have facilitated about 70 per cent of the funds that have been invested in the power sector by successful bidders for the Generating Companies (GENCOS) and Distribution Companies (DISCOS). 
  Authentic figures reliably gathered revealed that a total investment of $357.7 million will be made in the DISCOS in 2013 and consecutively for the next four years, bringing the total amount to almost $1.8 billion for a five-year period.
  Having paid up the 25 per cent of the acquisition cost in March 2013 and the required balance of 75 per cent of the value of the electricity assets by August 2013, the respective successful bidders will formally receive the GENCOS and DISCOS as from October 1, 2013, thus bringing to a close a successful chapter in the country’s power sector privatisation, which Oxford Analytica, rightly noted is the first wholesale power sector privatisation in Africa. But barring any negative turn of event, so far, there is reason to commend all “hands on the deck.”
 

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