“Nigeria as an emerging economy is set to provide the best market for direct foreign investment especially in the power sector,” said Nebo.
There is no doubt that financial experts are in agreement that the current reform in the power sector, especially with the privatization of electricity generation and distribution will dramatically lower costs of goods and improve productivity in Nigeria’s economy.
Nebo spoke when the Federal Government signed a $30bn Memorandum of Understanding with HQMC Korea Company Limited, saying it would give rise to a quantum leap in power generation by 10,000megawwats for the next 10 years.
The minister said the addition of 1,000MW of solar power annually for the next 10 years would give the nation the required energy mix needed for sustainable development.
Also, a former chairman of Goldman Sachs Asset Management, Jim O’Neill, said Nigeria’s economy “could easily” grow at a rate of 10 per cent if the newly privatized power industry puts an end to daily electricity cuts.
Nigeria’s population of more than 160 million people, the biggest in Africa, is key to unlocking “enormous” growth potential, O’Neill, now a Bloomberg View columnist, said recently in an interview monitored in Lagos.
Nigeria is ranked alongside Mexico, Indonesia and Turkey as part of his MINT countries with the largest emerging-market populations outside Brazil, Russia, India and China.
President Goodluck Jonathan in September handed over control of 14 state-owned power companies to new owners including Siemens AG, Korea Electric Power Corp. and Transnational Corp., starting a market-driven electricity industry in the country.
“If industry and business deliver on this new power agreement, that’s going to propel growth to so much stronger levels,” O’Neill said.