(http://www.nigeria.gov.ng/images/Namadi%20Sambo_9.jpg)The Federal Government has commended the banking industry for its role in the success of the power privatisation exercise, saying it bestows confidence to the present administration and the country. Vice President Mohammed Namadi Sambo made the commendation on Friday September 27, 2013 in Abuja during a special forum on financing the power sector reforms for economic development. He extolled the banking industry in Nigeria on its contribution to the growth of the country towards achieving the desire to become one of the top twenty economies in the world through reliable, affordable and adequate power supply. Namadi Sambo commended the Central Bank of Nigeria for opening up the privatisation process through its N300 billion intervention fund for the power and aviation sectors. The Vice President also charged the banking industry to participate in the funding of the US8 million gas-to-power projects as well as the $3.7 billion 20,000 megawatts power transmission capacity by 2016 among others. According to him, the Federal Government through the Nigerian National Petroleum Company, the NGC and the private sector is implementing a robust programme for the realisation of the Nigerian Gas Master-plan. The programme, he said has specific interest in meeting the gas-to-power demand in the country at a planned cost of about US$8 billion. He added that US$500 million out of the US$1billion Euro-Bond would be utilized as counterpart funding for implementing the project. On the power transmission capacity, the Vice President noted that the total funding for the project is estimated by the Transmission Company of Nigeria (TCN) to cost about US$3.7billion. "I am pleased to inform you that these projects have already been arranged with US$1.6 billion derived from the sale of the proceeds of the NIPP/NDPHC ten new power plants and US$500 million sourced from the China-EXIM bank. The balance of the sum is from the African Development Bank (AfDB), IDB and Nigerian local banks," he said. While explaining that the privatisation of PHCN successor companies has reached completion stage with successful resolution of labour issues, the Vice President disclosed that generating and distribution companies would be handed over to new owners on Monday 30th September, 2013 in a ceremony to be conducted by President Goodluck Jonathan. He particularly commended the private sector for their confidence in the exercise. He expressed Government's pledge to fulfill its promises despite competing demands from sectors such as transport, agriculture and education in pursuit of the vision 20:2020 target of 20,000 megawatts. The Governor of the Central Bank of Nigeria, Sanusi Lamido Sanusi in his remarks said that the forum aimed to review the contributions from the banking industry to the power sector reform programme. He stressed that the Central Bank of Nigeria which is the apex bank in collaboration with the Federal Ministry of Finance is reviewing development finance institutions and creating the direct foreign investments that would finance critical development projects. Also speaking, the Chairman of the Technical Committee of the National Council on Privatisation, Atedo Peterside gave a rundown of the processes leading to the success of the privatisation exercise. He challenged the banking industry not to relent in its support to the power sector, noting that the sector has huge potentials necessary for growth in the Nigerian economy.
Source: FG says banking industry cushions achievement in power privatisation (http://www.nigeria.gov.ng/2012-10-29-11-09-25/news/573-fg-says-banking-industry-cushions-achievement-in-power-privatisation)