Power-Plant-16Nigerian banks have injected a total of $2 billion (N318 billion) through the new owners of the Power Holding Company of Nigeria assets in the ongoing privatisation programme.

Managing Director of the Fiderlity Bank plc, Mr. Reginald Ihejiahi said on Friday that the Nigerian banks are actually the major financiers of the ongoing power privitisation.

Speaking at the forum on Financing Power Reform for Economic Development Ihejiahi said the money was injected through various interventions and loans granted to the new owners of the PHCN.

According to him, some people are of the belief that Nigerian banks are not impacting on the economy through major projects like the power projects. He said it’s not true.

Also in his presentation the Chief Executive Officer of the Africa Finance Corporation Mr Andrew Ali said the corporation has injected about N226 billion  to fianace some power projects in the coutry.

“In terms of impact, we finance generation of 800 mw equivalent to 25 percent of the power on the grid.”
Meanwhile,  management of First City Monument Bank (FCMB) said it has commited over $275 million  about N44.55 billion to the power sector reform and the value chain opportunities

According to the Group Head, Project and Structure Finance of FCMB Capital Markets Limited, Robert Grant, the FCMB Capital Markets is actively involved in the ongoing Niger Delta Power Holding Company’s (NDPHCs) privatization of its National Integrated Power Projects (NIPPs).

He said FCMB was one of the first banks to access the BOI-PAIF with provision of a N3.2 billion Term Loan Facility to Tower Power Utilities Limited (TPUL) for their 17.75 MW combined cycle gas fired power generation plant in Otta Industrial Estate, Ogun State. The feedstock is gas supplied by Shell through a pipeline which terminates in the Ota Industrial Estate. Apart from scheduled maintenance, the gas supply has been uninterrupted since inception. The plant provides power to several enterprises including but not limited to Aluminum Rolling Mills, Kolorkote Nigeria Limited, Eagle Packaging & Printing, Green Fuels, Dychem, Covenant University and Euro Global & Food Distilleries. The clear value proposition is the constant power supply that has significantly improved efficiency, competitiveness and profitability as almost all TPUL’s customers have effectively de-mobilized their existing diesel-fired assets.

The bank in a statement said in addition to the Discos, FCMB group has financed gas pipelines, gas processing projects, and greenfield and brownfield IPPs. Apart from FCMB Limited (the group’s commercial banking arm) providing debt finance, FCMB Capital Markets has  provided advisory services including structuring, arranging, syndicating transactions as well as post-closing technical support in its role as Technical Bank.


Information from Daily Trust was used in this report.