Operators kick as EU approves €720m loan facility to aid Nigeria’s power sector

Nigeria will be drawing about €120m annually in the next six years, totaling €720million by 2022 as loan facility from the European Union in support of the country’s power sector, according to the Ambassador of the EU to Nigeria. Mr. Michel Arrion.

Arrion, who doubles as the Head of Delegation to the Economic Community of West African States (ECOWAS), disclosed this at a media briefing in Lagos Friday.

He added that under the European Development Fund, the EU had between 2008 and 2013 spent about €750 million as grant to Nigeria.

But operators said they were yet to be briefed on any plan by government to attract funds for the sectors, given the fact that they were already committed in more than $200 million privately sourced foreign loans.

They complained that the present recession has been making it difficult for them to meet their obligations on most of their loan facilities.

The Ambassador, throwing more light on the EU’s support to Nigeria towards fighting poverty explained that in 2014, the grant to Nigeria was reduced to about €520 million, but an additional financial instrument of about €200 million was later created to assist this year for the country covering more years.

Read also: 50% of factories may shutdown over forex shortage –MAN

“Energy is really a pre-requisite for any kind of development; you cannot develop health without energy; nor can you develop water and sanitation without energy. Also, energy not developed can affect infrastructure in general and trade.

“We believe that lack of energy is probably the major hurdle to the economic development of Nigeria and that is certainly a sector where the EU would intervene efficiently in Nigeria in the coming years. But EU alone would not be able to fix the problems in the energy sector in Nigeria.

“It is primarily for Nigeria to fix the country’s problems. But we can support the authorities. We believe that it is not only the public sector that can fix the problem, what we need is more private investments and more partnership between public and private companies. The missing element to fixing the problems in the energy sector is obviously the access to finance,” the envoy said.
By Emma Eke….

 

 

RipplesNigeria …without borders, without fears

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now