…….Says no sovereign guarantee in the sector.
Until the Muhammadu Buhari’s administration came on-board, the nation’s power sector has been driven by business men who were mostly motivated by profit, hence over the years, no proper consideration for due process, respect for law and order, indeed sustainable policy direction has not been adhered to.
This, he argued has been responsible for the proliferation of sub-standard equipment and materials, policy summersault, lack of consumers’ centred interests, no data to aid planning, indeed lack of professionalism and concerted efforts in doing things right.
The Minister, Babatunde Raji Fashola who received, in ‘audience, the Acting Executive Secretary, Nigerian Investment Promotion Commission, (NIPC), Hajia Ladi-sule Katagum in Abuja, reiterated that in today’s power sector, government role is policy, regulatory, safety and standards, training of specialized professionals to run the sector. He said that for those who want meters they should contact the Distribution Company in their locality, for no meters would be purchased for anyone or group by Government as those concern are in the hands of the private sectors.
“The law is clear on this, for those that are desirous in investing in power plants they must start from Nigerian Electricity Regulatory Commission (NERC), where they are expected to get appropriate permits and licences after which they are to approach the Nigerian Bulk Electricity Trading Company (NBET) for Power Purchase Agreements (PPAs).
It is expected that with PPAs, investors can access fund from banks and other financial institutions to secure financial muscle for their projects. The Minister stressed that Government is determined to protect the interest of the customers and will also allow for reasonable margin as profit. No Government will allow profiteering, he said. He enjoined today’s business men to be thorough, well informed and knowledgeable and more essentially, must follow the law and laid down procedures at all times.
The Minister encouraged the visiting team to engage in information gathering through interaction with various government agencies relevant to its mandate, so as to develop a robust structure for a twenty-first century investment promotion outfit.
Earlier, in her introductory remarks, the NIPC Boss, Hajia Ladi-Sule Katagun informed the Minister that her mission is to develop appropriate framework for the development of “Ease of doing Business Modus” through interaction with the main drivers of the sector.
She said her visit to the Ministry is to find out things on the ground in response to many inquiries and concerns about the sector, adding that NIPC is poise to see in the quickest possible time, that processes of getting projects on track are shortened.
Its mandate of providing enabling environment for investors is further enhanced through collaboration with relevant stakeholders, as NIPC receives more enquiries on power sector than any other, so NIPC needs all information available to it, especially about the policy direction of Government.