Indian firms position for a bite out of $3billion World Bank loan to Nigeria

Indian power equipment manufacturers are intensifying efforts to partner with local distribution, transmission and energy companies to position themselves to benefit from the $3billion World Bank Power funding recently made available to Nigeria

India is offering cooperation in the areas of financing, equipment supply and technical assistance to improve Nigeria’s energy access while helping their country meet government target of building a $5trillion economy by 2025 from the current $2.6trillion.

The Future Energy Nigeria Conference which held in Lagos between November 12 and 13 saw over 50 Indian companies take exhibition stands to showcase a dizzying array of electricity transmission and distribution equipments and were keen to develop partnerships with Nigerian power companies.

One of the companies leading the pack is SkipperSeil Group who wrote the biggest sponsorship cheque for the event. The group operates in various sectors including Power Transmission & Distribution, Mining, Education, Healthcare Services, Agriculture and Water Infrastructure through its two divisions, Skipper Infra and Skipper T&D.

Skipper t&d manufactures substation equipments, EPC in Generation, Transmission, Distribution & Automation Sectors and Service and Repair of Transformers. The company opened its Lagos office on November 12 and invited the Minister of Power to cut the ribbon.

The interactive session that followed was a masterclass on lobbying for government support. The company took the Minister round its facilities and thoroughly explained how all its power equipments can help dent Nigeria’s energy need. An impressed minister promised government support as long as they kept to standards and buy Nigerian cables.

What was intriguing in the exchange is that the Indian high commissioner to Nigeria was at the forefront of the buy India campaign. In a speech at the event, he told the audience of mostly businessmen that the government has millions of dollars worth of credit literally waiting to be tapped. It comes with just a little condition precedent that you buy India and work with Indian companies.

The World Bank in October approved $3billion for the expansion of the transmission and distribution networks in the power sector.

Zainab Ahmed, Nigeria’s finance minister said the loan would be disbursed in four tranches of $750m each beginning from next year.

She said the facility will cover the gap between the current tariff and the actual cost of generating electricity, improve transmission capacity and also enhance Nigeria’s ability to pay previous obligations in the sector that has crystallised so that investors in the sector can go on with expanding investments in the sector.

To achieve Neranda Modi’s ambition of a $5trillion economy, India has cropped its income tax rate to keep it at par with Asian rivals including Indonesia and Vietnam, it softening rules to attract foreign direct investments from US companies and signing trade deals.