The events in the country’s energy sector last year were no doubt significant, however, despite the set target to raise power generation capacity to about 20,000 megawatts, power supply in the country seems to have worsened.
“You have to look at these things in perspective. Given the lack of investments taking place in this sector over the last 20 years or so, we Nigerians have to be a little patient in expecting the gains in the reforms that just took place to actually bear fruit,” Muyiwa Lawal, Business Manager- Power and Services, Diamond Bank told CNBC Africa.
Even so, Lawal is optimistic about the future of the sector in 2014 because improvement in the service delivery can be expected as the new owners take stock of the assets they’ve acquired and also put in place measures to stop technical losses.
With more privatized power companies seeking offshore funds, Lawal believes that the process won’t be too difficult and as a result of the BPE’s proper handling of the first phase, a lot of the foreign investors who were weary of the sector are more comfortable now.
“We know that for us to achieve that (target), we require about 3.5 billion dollars of annual investment in the sector. If you look at those numbers and what took place last year, it doesn’t just add up that local banks would be in the position to cover the funding gap,” he added.