APA – Lagos (Nigeria)
The report that the Nigerian Government spent $112.35m servicing external debt in January 2023 and the plans to deploy five million solar power connections in communities that are not connected to the national electricity grid are some of the trending stories in Nigerian newspapers on Friday.
The Punch reports that the Nigerian Government spent $112.35m servicing external debt in January 2023, according to findings by The PUNCH.
Data from the Central Bank of Nigeria’s Weekly International Payments showed that the amount spent in January was 146.17 per cent higher than the $45.64m spent in December 2022.
This occurred as the Federal Government struggled to boost its revenue base despite its revenue generation efforts.
The PUNCH earlier reported that the Federation Account Allocation Committee shared N750.17bn among the three tiers of government in January 2023.
The figure represents a decrease of N240.02bn compared to the N990.19bn shared in December 2022.
In 2022, Nigeria spent $2.4bn to service its external debt, which was a slight increase from the $2.11bn spent in 2021.
The newspaper also reported that the Federal Government deducted over N78bn from allocations made to the states for external debt servicing.
This was according to data from the Federation Account Allocation Committee Disbursement reports published by the National Bureau of Statistics.
The deductions were made in 2022 from the allocations given to state governments from the Federation Account.
The newspaper says that the Nigerian Government is partnering with investors to deploy five million solar power connections in communities that are not connected to the national electricity grid.
Under its Solar Power Naija Programme, the government, through the Rural Electrification Agency, held an investor match-making event in Abuja on Tuesday to provide the opportunity for potential investors to pitch their financial offerings to developers.
The REA is the Implementing agency of the Federal Government under the Federal Ministry of Power tasked with the electrification of unserved and underserved communities to boost economic growth through the supply of electricity.
The agency stated in a document that “the Solar Power Naija Programme was launched as part of the Economic Sustainability Plan to achieve the roll-out of five million new solar connections in off-grid communities.”
It added, “This programme is expected to generate an additional N7bn increase in tax revenues per annum and $10m in annual import substitution. The objective of the programme is to expand energy access to 25 million individuals (five million new connections) through the provision of Solar Home Systems or connection to a mini-grid.
“It is to increase local content in the off-grid solar value chain and facilitate the growth of the local manufacturing and assembly industry and incentivise the creation of 250,000 new jobs in the energy sector.”
The event, which was organised in collaboration with the Power Africa Nigeria Power Sector Programme, provided a networking and match-making forum that brought together key investors and high-performing developers in the power sector
The Guardian reports that the Federal Government, yesterday, inaugurated the joint task team comprising the Nigerian Ports Authority (NPA), Nigeria Customs Service (NCS), Federal Ministry of Transportation and others to tackle the lingering crisis around overtime cargoes at the country’s seaports and terminals.
The Permanent Secretary of the Federal Ministry of Transportation (FMT) and Chairperson of the Committee, Dr. Magdalene Ajani, while inaugurating members of the task team in Abuja, stressed the need to clear overtime cargoes at ports and terminals, saying their presence has limited the number of cargoes that can be handled.
She lamented the large number of the overtime cargos has resulted in a drastic drop in the volume of cargoes coming into the country, adding that the reduction in cargoes has ultimately affected Internally generated revenue (IGR).
The Permanent Secretary explained that clearing of overtime cargoes should not be confined to the Ikorodu Lighter Terminal, Lagos Port Complex, and TinCan Island Port Complex but extended to all other ports and Terminals within the country.
Ajani stated that the task team was constituted after several meetings among the Minister of Transportation, Mu’azu Sambo, and the Comptroller General of NCS, Hameed Ali; the Permanent Secretary and others.
The newspaper says that the Nigerian Government, yesterday, said unless the private sector invests about $3.5 billion yearly, raising electricity generation capacity to 30, 000 megawatts in the next seven years would remain a mirage.
This brings Nigeria’s investment need to at least a cumulative $24.5 billion if the aspiration of raising electricity capacity to 30,000 before 2030 will be realistic.
Minister of Power, Aliyu Abubakar, who spoke at the ‘Solar Power Naija Programme Investor Matchmaking Event’ organised by the Rural Electrification Agency (REA) in Abuja, linked the industrial revolution of the country to the power sector, adding: “Federal Ministry of Power is at the centre of undertaking critical actions that would transform the industry from public to a private sector-driven.”
While Nigeria privatised the electricity sector in 2013, hoping to turn around the despondent state of the sector and bring to reality the year-long aspiration for reliable and stable electricity supply, the initial optimism remains elusive as the country’s actual generation remains around 4,000MW.
Represented at the event by the Director, Investments and Power Sector Development, Ministry of Power, Eyo Babalola, the minister said FG has put in place the electricity power sector reform (EPSR) Act and recently signed into law the bill empowering the state government to generate, transmit and distribute electricity to boost investment.
Abubakar insisted that the investment opportunities in the Nigerian power sector are endless. Managing Director of REA, Ahmad Salihijo, noted that budgetary allocation would not bridge the gap in rural electrification in the country, stressing that concerted efforts were needed to attract the private sector to the space.
Salihijo said the Solar Power Naija team, with support from the REA, has been working to increase access to financing for developers in the solar power space, holding discussions with potential investors and guarantors interested in investing.
According to him, the engagements and discussions have yielded significant progress, adding that the investor matchmaking would fast-track funding options and scale up electricity access to unserved and underserved communities in the country.
The Solar Power Naija Programme was launched as part of the Economic Sustainability Plan (ESP) to achieve the roll-out of five million new solar connections in off-grid communities.
The programme is expected to generate an additional N7 billion increase in tax revenues yearly and $10 million in yearly import substitution. With the programme, the Federal Government is expected to expand energy access to 25 million individuals, increase local content in the off-grid solar value chain and facilitate the growth of the local manufacturing and assembly industry and Incentivize the creation of 250,000 new jobs in the energy sector.
GIK/APA