Nigeria, U.S. fine-tune plans for power, aviation sectors

[NewsCaster]

 THE Federal Government and Washington through the United States (U.S.) Export-Import Bank and the Central Bank of Nigeria (CBN) are set to implement more financial stimulus packages in Nigeria's power and aviation sectors.

The packages are designed to support and promote new investments in the two sectors to boost economic activities in Nigeria, the country's Ambassador to U.S., Prof. Ade Adefuye, has said.

Adefuye said in Washington DC yesterday that the EXIM Bank's officials in particular have revealed to him that Nigeria had only used about 25 per cent of the financial facilities and products available for financing projects in the country.

"I have met with the President of the U.S. EXIM Bank and its top officials twice recently and they assured me that the bank is keenly interested in providing financial support to back up the Federal Government's power generation and transmission projects," he said.

EXIM Bank officials also confirmed that the power and aviation sectors are two of the major global financing priorities in Nigeria.

According to the bank, between 2000 and 2009, for instance, the EXIM Bank "has authorised over $5 billion in medium and long term transactions for the export of goods and services in the power sector." The bank has also "played a vital role in the development and growth of the power sector in numerous developing countries like Nigeria."

In 2009 alone, the bank reportedly funded projects in the generation, transmission and distribution of power with an overall financial exposure of about $4.5 billion in the power sector.

While both the EXIM Bank and the CBN are expected to work out details of the aviation sector projects, Adefuye said help for the power projects are already proceeding from both banks.

Adefuye said an investor-financier workshop has been scheduled for Washington DC on March 10, 2011 where EXIM officials and their CBN counterparts will make specific financing products and options available to U.S. and Nigerian investors in the power sector in the areas of generation and transmission.

"It is a fall-out of the U.S.-Nigerian Bi-National Commission Work Group on Power," Adefuye disclosed, adding that during the last visit of Foreign Affairs Minister, Odein Ajumogobia, the issue was discussed between officials of both countries.

The commission, according to Adefuye, is keen on ensuring that there is concrete progress in the area of power generation and transmission in Nigeria.

He said there would be a meeting ahead of the March 10 workshop between the President of EXIM Bank and the Presidential Adviser on Power, Prof. Barth Nnaji, who will participate in the workshop.

Adefuye said the workshop is unique because "it is both a road show for power sector and also an opportunity to meet bank financiers who will be in attendance to provide strategic and financial solutions to potential investors."

The workshop will also provide guidelines for American and Nigerian businesses on how to collaborate on investment in the power sector.

Planned by the Nigerian Embassy in U.S. under the auspices of the Corporate Council for Africa (CCA), officials from the Bureau of Public Enterprises (BPE), National Electricity Regulatory Commission (NERC), and the Power Holding Company of Nigeria (PHCN) are also expected to attend the workshop. Also expected at the event are business organisations in the power sector from the two countries.

Senior Special Assistant on Power Transmission to the President, Mr. Akin Bada, said less than 10 per cent of the Nigerian grid is home-made, creating an opportunity for the manufacturing of needed equipment in the area.

Bada added that repair works, production of insulators and conductors are not currently done in Nigeria, meaning that the production of copper, aluminum and repair conductors can commence in Nigeria by investors. He said the government cannot single-handedly provide the investments required in the industry.

The Export-Import Bank is the official export credit agency of the U.S. with the mission "to assist in financing the export of American goods and services to the international market."



Source: Nigeria, U.S. fine-tune plans for power, aviation sectors