“We are very confident about the policies in the power sector that the government has put in place for the reforms. We’ve been working with the government on this for the past two to three years and we’ve also been having advance conversations with a lot of the winners of the assets especially on the distribution side,” Solomon Adegbie Quaynor, IFC's Nigeria Country Manager told CNBC Africa.
The International Finance Corporation (IFC) is confident in the investment prospects of the sector, as they plan to support an additional 15,000 megawatts.
“In addition we have to look at the oil, gas, to power value chain. [Although] transmission continues to be government owned ultimately, if there are Private Partner Partnerships on the transmission side, we are looking to support it,” he said.
The fact that transmission is still government owned caused concern for many investors however, Quaynor believes that the government has put in the right policies within the power value chain.
“We are all anxiously waiting for the execution of those policies and so the two areas where there are potential execution of policy risks, will be transmission and gas,” he explained.
According to him, the government is making the right decisions and the IFC is going to partner with them to support the execution of the policies.
“Very clearly, it’s an ambitious power sector reform program. Trying to privatise 10 to 11 distribution companies, 6th generation companies and one transmission company, at the same time is very ambitious,” he added.
Nonetheless, as Nigeria is a big country with huge demands, it is not insurmountable. Quaynor believes that a lot of the sector's big players are looking to get technical partnerships so the risks can be mitigated.