Abuja has provided $300 million partial risk guarantee, domiciled with the Central Bank of Nigeria (CBN) and the World Bank, to protect investors in the power sector, according to Minister of State for Power, Mohammed Wakil.
Mohammed Wakil, Minister of State for Power
He made the disclosure in an exclusive interview with TheNiche in Abuja on his return from a summit on Power Africa organised in Miami, Florida, by the United States Department of Commerce.
Wakil, who was the keynote speaker at the event, was invited by the United States government.
He told the summit of leaders of firms and conglomerates in the power sector that there are tax holidays and waivers for power equipment importation for generation, transmission and distribution in Nigeria.
He gave an assurance to investors on returns on investment and cited attractive tariffs for renewable energy.
“The government of Nigeria has achieved what industry experts described as one of the most holistic, ambitious and transparent privatisations of power assets in recent times.
“The distribution and generation assets have all been successfully handed over to the private sector since November 2013,” Wakil told the gathering.
He pledged that Nigeria will take advantage of Power Africa, sponsored by the United States, to garner investment in the power sector.
A Power Africa desk has been established at the Ministry of Power to serve as a one-stop shop for stakeholders, as well as attract investment based on funding and technical assistance provided by the U.S.
The U.S. Department of Commerce announced in a statement that at the summit, prominent government and business leaders, including Wakil, chief executive officers of Africa’s major power companies, and representatives from the U.S. Export-Import Bank and USAID shared opportunities for accessing the energy sector in African markets.
U.S. Secretary of Commerce, Penny Pritzker, plans a trade mission to Ghana, Nigeria, and Ethiopia this month to promote American exports to Africa by helping U.S. companies launch or increase business in the energy sector in West Africa.