On Buhari´s Quest To Tackle Power Sector Deficit | Independent Newspapers Limited
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On Buhari´s Quest To Tackle Power Sector Deficit

Posted: May 17, 2015 at 4:49 am   /   by   /   comments (0)

By Joe Mmeh


The energy crisis in Nigeria is real and for Gen. Buhari to be successful, he has to tackle the problem of power deficits seriously and transparently. He needs to make policies that shall encourage private sector participation in the entire power sector and attract foreign Investors. States and Cities in Nigeria shall be allowed to generate and distribute electricity in their areas, if they can. Reliable and uninterrupted Electricity supply is the key to Industrialisation and sustainable development of any Nation. After swearing in, let Gen. Buhari declare state of emergency on power sector, organise workshops both on national and zonal levels, invite stakeholders and prospective investors, lay down his plans and policies and provide enabling environment as well as Incentives.

Coal to Energy: There are large Coal deposits at Enugu which are untapped and can be used to generate Electricity.  Some Nigerian Companies have been granted licences to mine and use coal for power but until now, nothing has been done by these Companies. I assume that their delay in taking off, may have to do with their inability to source the huge funds needed to build modern coal fired power plants and getting capable technical partners with the necessary Know-How and Technologies. Gen. Buhari should invite and ask these companies to team up among themselves, form Partnerships / Consortia, and bring their resources together as to enable immediate take off and implementation of the projects.

In today’s business world and in such capital intensive project like power, small companies have little chances of funding or access to credit facilities and in order to be successful and sustainable, they are merging and forming partnerships, therefore all those that obtained Licences to build and operate Power Plants in different Zones in Nigeria but have challenges shall be made to pull their resources together as to build bigger and modern Power Plants.

Project Financing and German Consortium: The proposed Coal and/or Gas Power Plants are critical and essential infrastructures, which Gen. Buhari´s Administration needs to show serious commitment to as project financing shall not pose much problems. A German Consortium is ready to partner the Federal Government and/or Nigerian Consortium /Investors in this area and act as both co-financing and technical partners. The German Consortium shall require at least 25% Counterpart funding from the Federal Government and/or Nigerian Investors, while they shall provide the rest 75% of the Project Budget in form of  Equity and Loan with 2% Interest rate. The 25% Counterpart funding to come from the Federal Government and/or Nigerian Consortium shall be confirmed through Bank Confirmation Letter (BCL) from any AAA-rated Bank or through sovereign government guarantee.

The German technical partners shall do the feasibility Studies and Analyses required, starting with determining the overall Coal reserve at Enugu Minefields and confirming its Quality & Quantity, then undertaking the Environmental Impact Assessment studies, presenting Business Plan, Plant Designs and the Cost Estimation of the whole Project. The plant shall be designed to deliver the solutions with optimal results (high efficiency).

Our Support: The job before Gen. Buhari as the Nigeria’s next President is enormous and challenging, therefore there is no gain-saying the fact that he needs the support of all Nigerians both home and abroad as well as the meaningful contributions of all those who can help him fulfil his Campaign promises. He needs technocrats as well as people who are practically oriented and can produce immediate results. May God give him and his Team the Wisdom and Strength to discharge their Duties and take Nigeria to a new height.


•Mmeh is a Business Consultant based in Germany