At the Annual Power and Utilities Roundtable organized by PricewaterhouseCoopers (“PwC”) in Lagos yesterday, the Managing Director of Mainstream Energy Solutions Limited (“Mainstream Energy’), operators of Kainji and Jebba Hydro power plants, Mr. Lamu Audu told participants that Nigeria is planning to supply electricity to Burkina Faso. According to Mr. Audu, a significant portion of the power generated by his company is rejected by electricity distribution companies (“DisCos”) in Nigeria and wasted, hence his resolve to sell the balance to other African countries who are willing and able to pay for the generated power.
Nigeria’s power sector has immense potential for growth. Although several Nigerians are willing and able to pay for more power supply, there remains an acute shortage of power in Nigeria. In this year alone, the World Bank provided $350 million in funding to Nigeria’s Rural Electrification Agency’s (“REA”). Also, in April, the Minister of Power, Works and Housing, Mr. Babatunde Fashola inaugurated a project in Abuja for emergency improvement of electricity supply called the capacitor bank, which was built by the Japan International Cooperation Agency (“JICA”).
Nigerians are clearly in dire need of more power and it is regrettable that in the midst of this shortage, electricity generation companies in Nigeria have resolved to sell unused power to neighbouring African countries. The statement of Mr. Audu yesterday is definitely a call for local and international investors to invest in Nigeria’s power sector, particularly in the area of electricity distribution. With sound legal advice, such investments could be structured to withstand economic challenges and to yield significant returns in the near future.
Source: Guardian Newspaper
The contents of this news alert are meant for the general information of our clients and friends and do not amount to legal advice. All enquiries on the subject may be made to: email@example.com
Adepetun Caxton-Martins Agbor & Segun
9th Floor, St. Nicholas House, Catholic Mission Street, Lagos Island, Lagos State, Nigeria.
Telephone: +234 (1) 462 2094; 462 2480; 740 6743 Fax: +234 (1) 461 3140