The Power Sector Recovery Programme (PSRP) of the government has disclosed that Nigeria’s electricity sector which was massively courted by local and international investors on the heels of its privatisation by the federal government in 2013, has finally fallen out of favour in the eyes of the same investors, THISDAY reports.
According to the PSRP which was initiated by the federal government and World Bank, the sector has lost its appeals to both local and international investors so much that sources of funding for its big projects have dried up and left it with just two dependable funding windows – the Central Bank of Nigeria (CBN); and World Bank. It noted that while the power sector has lost the kind of investment appetite it hitherto commanded from financiers, there was an urgent need to revive its fortunes, adding that the PSRP was initiated for this.
“A bold turnaround plan is now required to utilise current assets and resources optimally, and to restore investor confidence in the sector, required to deliver the planned sector reforms,” it explained. The document noted that it contained several proposals made to get the sector out of the woods, amongst which are the government’s reactivation of the privatisation of some key power plants built under the National Integrated Power Projects (NIPPs), as well as other key policy measures which the government must initiate.