Nigeria’s minister of power, Bart Nnaji, has said that Nigeria will require a capital investment of $3.4bn to increase the country’s electricity generating capacity from the current 4200 MW to 13,000 MW by 2013.
Nnaji also said that the federal government could not undertake a fraction of this required investment in the electricity sector.
Nnaji claimed that “funding in the sector was not all about money, but the development of structures that are capable of sustaining the growth of the sector.” He said: “Over 80 per cent of the Ministry’s operational cost goes into the payment of staff salaries and welfare for Power Holding Company of Nigeria (PHCN).
There is therefore a new drive to attract investment in the sector, have a cost reflective tariff, and privatise, because the capital needed is enormous and the government cannot fund even a fraction of the necessary investments. The sector requires a complex series of inter-locking reform interventions.”
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