Vice President Sambo commended Nigerian
banks for the role in the electricity sector.
The Federal Government has earmarked $8
billion (N1.3 trillion) for the execution of the
Nigerian Gas Master Plan with specific
interest in meeting the gas-to-power
demand in the country.
Vice President Namadi Sambo stated this in
Abuja on Friday at a forum on investment in
the power sector.
He said the programme would be jointly
implemented by Nigerian National Petroleum
Corporation (NNPC), Nigeria Gas Commission
(NGC) and the private sector.
According to him, already $500 million (N80
billion) of the $1 billion dollars realised from
Euro-Bond would be utilized as counterpart
funding for implementation of the project.
He said government had also embarked on
an extensive programme for the upgrading
of the nation’s power transmission capacity.
‘‘We are also implementing an extensive
programme for the upgrading and
expansion of our power transmission
capacity. We plan that before the end of
2014, we can transmit up to 10,000mw and
by 2016 to transmit up to 20,000mw,” Mr.
Sambo said.
He said the total funding for the project is
estimated by the Transmission Company of
Nigeria (TCN) to cost about $3.7 billion.
‘‘I am pleased to inform you that funding for
these projects has already been arranged.
‘‘$1.6 billion is coming from the sale
proceeds of the NIPP/NDPHC ten new power
plants, $500 million from the China-EXIM
bank and the balance from the African
Development Bank (AfDB), Islamic
Development Bank and (from you) our local
banks,” he said.
Mr. Sambo announced that the PHCN asset
would be handed over to private sector
operators on September 30. He reassured
that government would continue to improve
the efficiency and affordability of power
supply in the country.
‘‘The Federal Government shall, in tandem
with the goals and objectives of the National
Electric Power Policy (NEPP), continue to,
among others, improve the efficiency and
affordability of power supply.
‘‘I will like to share with that we are
investing in improving their mix generation
capacity of this country by the construction
of the Zungeru hydro-power which would
add 700megawatts at the cost of 1.2billion
dollars, work is already on this project.
‘‘The construction of the Mambila Hydro
power plant which would add
3050megawatts and we are utilizing
N1.7billion from the sale proceeds of the
NIPP Power plant as counterpart funding for
this project that will cost 6.4billion dollars,’’
he said.
Mr. Sambo commended the private sector
and the banking industry for supporting
government’s efforts to improve the power
situation in the country through their
positive response to financing the
Independent power projects.
He particularly commended the Central Bank
of Nigeria (CBN) for kick-starting the
privatization process through its N300
billion intervention fund for the power and
aviation sectors of the economy.
‘‘Let me also congratulate the banking
industry for its contribution so far to put
our great country on the path of growth to
attain our aspiration to be among the top
twenty economies in the world through
reliable, affordable and adequate power
supply.’’
According to Mr. Sambo, in the coming
years, more demand would be placed on the
banking sector to support power
infrastructure renewal and the industrial
development to support the power sector.
In his remark, the Governor of the CBN,
Lamido Sanusi, said the forum was to
review the contributions of the banking
industry to the power sector reform
programme.
According to him, the CBN in collaboration
with the Ministry of Finance is reviewing the
Development Finance Institutions to
facilitate the financing of critical
development projects.
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