• Tuesday, April 23, 2024
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IFC, others to finance power projects in Nigeria


The International Finance Corporation (IFC) has disclosed plans to finance power projects in Nigeria through the Energy Business Plan for Nigeria initiative.

Solomon Adegbie-Quaynor, country manager, IFC, who made this disclosure in Lagos at a seminar on transforming the Nigerian power sector organised by Akindelano Legal Practitioners, said the IFC, in collaboration with the World Bank and MIGA (Multilateral Investment Guaranty Agency), have committed to implementing the Energy Business Plan in the next 12 to 18 months.

He said the plan would include financing of 3 to 5 Independent Power Plants (IPPs) for at least 1,500 Megawatts (MW) of new generation capacity; 1 to 2 privatised distribution companies; at least 1 privatised generation company; at least 1 local content gas production/transportation company; and in partnership with the Nigerian Infrastructure Advisory Facility (NIAF), supported by the Department for International Development (DFID), developing the solar market for off-grid power solutions for SMEs and homes.

According to him, this is the first time IFC, World Bank and MIGA are doing this together in Africa.

Adegbie-Quaynor said the projects were structured in a bankable manner. “We will be able to fund these projects from our balance sheet and mobilise financing from other sources,” he added.

Late last month, the core investors who won the Power Holding Company of Nigeria 10 successor distribution companies (Discos) and five generation companies (Gencos) were asked to pay 25 percent of the share purchase price within 15 working days, according to Atedo Peterside, chairman, technical committee of the National Council on Privatisation.

The government is expected to net N304.25 billion from the sale of the 10 Discos and five Gencos across the country when it is completed.

The ten Discos were sold for N197.25 billion while the five Gencos were sold for N107 billion.