Nigeria Content Online

The special adviser to the president on power,
Bart Nnaji, at the weekend said a developmental miracle would occur in Nigeria
once the federal government concludes its power sector reform.

Speaking at the fourth Universities Research
& Development Fair (NURESDEF) event at the University of Nigeria at Nsukka,
Enugu State, Mr. Nnaji said, “Nigeria is a development miracle waiting to
happen,” adding that the key to the ‘development miracle’ is the modernisation
of the nation’s power sector, as contained in the Road Map for the Power Sector
Reform, which the President, Goodluck Jonathan, launched recently.

The road map provides a detailed analysis of how
the power crisis would be resolved within five years, with a plan to unbundle
Power Holding Company of Nigeria (PHCN) into a transmission company, six
generations, and 11 distribution firms.

The presidential adviser said the conclusion of
the reform agenda would automatically end “the perennial electricity blight in
our nation, which has stunted Nigeria’s development, as manufacturing firms
have collapsed or relocated to neighbouring countries and those which are still
in business here are operating with difficulties. The reform will end the de-industrialisation
of our country.”

Darling of investors

He disclosed that the federal government’s
decision to become a minority shareholder in the generation and distribution
companies, by reducing its interests to 49%, has been welcomed by both local
and local investors.

“Apart from various state governments and the
labour movement, which have indicated interest,” he told the audience,
“high-minded international entrepreneurs have displayed great commitment to
investing in the power sector. An example is Aser of India, which has pledged
to invest $2billion if we sustain the reform programme. And a group of
investors have approached the vice president, with a view to investing $20
billion in the sector.”

Describing Nigeria as “perhaps the best place on
earth to invest in infrastructure development because of the virgin market, the
huge market and the generally high yield,” Mr. Nnaji said foreign investors
have learnt from the success achieved in the reform of the nation’s
telecommunication sector.

“International businesses have learnt from the
experience of companies like Vodafone, which refused to invest in Nigeria’s GSM
market in 2001, only to bite their fingers when they saw the fortunes firms
like MTN began to make out of Nigeria no sooner than they commenced operations.

“Nigeria is so good for infrastructure investors, and that is why Bharta of
India paid billions the other day to acquire a controlling interest in Zain,
the international GSM operator,” he said.