Nigeria needs $ 262 bn for stable power supply

Apr 24, 2009 02:00 AM

The Nigeria Association of Energy Economists (NAEE), said what Nigeria requires to provide stable power supply by 2030 would be $ 262 bn, or over N 40 tn. The group's President, Professor Akin Iwayemi, disclosed this in Abuja, at the start of a two-day international conference with the theme: Energy Industry Restructuring: Interactions Between Business, Economics and Policy.
Iwayemi said: "The projected amount of investment to meet domestic power system expansion in 2030 is estimated at about $ 262 bn. This amount is enormous, given the antecedent of the industry. Though the financial requirement is daunting, it is achievable."

However, success in this regard was contingent on the right institutional framework, policy consistency, appropriate incentive structures and security of investment and input, he said. He said these "will guarantee the flow of required investment," adding that the successful privatisation of the telecommunication industry, which brought in more than $ 12 bn investmentin the last four years, was a testimony to this expectation.
"Mobilisation of the financial resources to support a dramatic scaling up of energy infrastructure capacity must factor in the risks associated with investment, to strengthen refining and pipeline and distribution network and power supply system," Iwayemi said.

He said optimal sharing of the risks among the three principal market actors -- the consumers, investors/producers and government -- was essential to efficient resource allocation in the industry for sustainable energy future in Nigeria and the West African sub-region.
In his keynote address titled, World Energy Markets: Developments and Prospects, Dr Taiwo Idemudia, a UK-based energy consultant, said energy diversity being championed by the United States would translate to energy security for all. He described it as a welcome development for oil producers who have always articulated the need for an orderly transition in global energy consumption.

Source /This Day
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