No way, FG won’t reverse power privatisation, Fashola tells Dangote, others

Despite persistent calls for the cancellation of the privatisation of the power sector, the Minister of Power, Works and Housing, Babatunde Fashola, has declared that the Federal Government will not cancel it.

The power sector was privatized by the administration of former President Goodluck Jonathan after unsuccessful attempts by previous administrations.

However, there had been calls by some for the administration of President Muhammadu Buhari to revisit the process and cancel it. The call was more enhanced when Africa’s richest man, Aliko Dangote, called on the federal government to reverse the power sector privatisation.

According to Fashola, the Federal Government is committed to the terms of power generation and distribution contracts it inherited and that government would only listen to calls for revisit if it has to do with opening up more investments in power generation and distribution.

The minister stated this on Thursday during the Fifth European Union, EU-Nigeria Business Forum at Eko Hotel, Victoria Island, Lagos.

Fashola said: “I have heard discussions about revisiting the privatisation of power. Honestly, I don’t know what it means. I like those who are pushing the argument to come out and have discussion with us.

Read also: More opposition for concessioning as Railway workers oppose government

“If revisiting the agreement means cancelling it, I won’t support. The investors who took the risk must have the assurance that government will not flip-flop.

“A contract that fails has consequences not only for the investors, but on both sides. I don’t believe in revoking contracts. Like politicians meet at nights, investors also meet themselves and talk every day. Once they see the government cancels contract signed with one of them, they will call on others to pack their bags and leave.

“This government will respect and uphold the contracts it has committed to and inherited. If there are issues with the contracts, the umpire is the judiciary.”

The minister further advocated for an increase in the volume of investment in infrastructure, saying that improved infrastructure is a globally-tested parametre to drive growth.

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