India Offers $100mn to Improve Nigeria's Power Supply

Lagos: India is offering a helping hand to Nigeria in the country's bid to generate enough electricity to meet the ever-growing demand in Africa's most populous nation.

Of an estimated $500 billion that the sector needs to improve, India has committed a $100 million line of credit under a memorandum of understanding to be signed soon. Though this contribution might be seen as a drop in the ocean considering the fact that Nigeria needs so much in order to satisfy the growing demand of its 160 million population, experts say the contribution of private Indian companies is helping to improve the sector.

National Electricity Regulatory Commission (NERC) Commissioner Eyo Epko says the power sector will need an average of $20 billion per annum to achieve 7,500 MW generation, excluding domestic gas investments. In addition, the country would need $500 billion investment to guarantee constant supply. The country would also require the right calibre of professionals and this is being provided by India.

Speaking at a ceremony to inaugurate a plant for the manufacture and repair of power transmission equipment, Indian High Commissioner Mahesh Sachdev said: "We have also been engaged in supporting the Nigerian power sector through professional capacity building in India under our ITEC training programme."

The training of these professionals is very important, Epko said, because more investment would be recorded by 2017. He was optimistic that the state governments would develop the capacity to regulate market operations within their boundaries.

More investments means more business for foreign companies keen on developing the sector. Sachdev said 12 Indian companies have expressed keen interest in the ongoing power privatisation programme. India, which is Nigeria's second largest trading partner, "has both the capacity and expertise to support Nigeria's ambitious development plans in the power sector", Sachdev added.