Osinbajo announces fresh strategy to de-risk Nigeria’s power sector

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Acting President Yemi Osinbajo said on Tuesday that the federal government is investing some hundreds of billions of naira in an assurance scheme that would provide the much needed liquidity in the power sector and attract additional investments, BusinessDay reports.

Speaking in Abuja at the opening session of the second edition of the Africa Finance Corporation (AFC) conference tagged AFC LIVE 2017 and titled, ‘The Infrastructure Revolution-Connect, Engage, Innovate.,’ Osinbajo said the guarantee became critical following funding challenges being experienced in the entire power sector value chain.

“The government has therefore devised a payment assurance guarantee and putting in some 700 billion of money into some kind of an assurance scheme that ensures that the entire value chain comes back to some form of liquidity that investments can come back into the sector,” the Vice President said.

“We are also looking at finding additional investments, especially in distribution so that the system can be refurbished, revamped and bring in new technology, there is a need to invest heavily in distribution,” the president added.