Power emergency: FG, STATES TO WITHDRAW $5bn…from excess crude fund

No Comments » August 26th, 2008 posted by // Categories: Energy Development Project



 

NEW NIGERIAN

August 26, 2008

 

Power emergency: FG, STATES TO WITHDRAW $5bn…from excess crude fund

From Cobham Nsa, Abuja

Federal Government yesterday said its declared power sector emergency is now fully on course, with the 36 state governments agreeing to the withdrawal of 5.375 billion US dollars from the excess crude account to meet the sectoral challenges.

Minister of Finance, Dr Shamsuddeen Usman said due process in withdrawing the estimated sum was almost completed following the success of most state governors in receiving the needed endorsements of their respective state houses of assembly to participate in the power sector project.

Speaking at the 49th Annual Conference of the Nigerian Economic Society (NES), yesterday in Abuja, Dr Usman said Nigeria presently needs huge capital investment on infrastructural development in order to move forward towards realizing the year 2020 vision as one of the 20 global economic giants.  

He said the infrastructural need was a critical element in the socio-economic development and growth of the country, adding that it was important for Nigeria to invest on infrastructural facilities such as security, power, transport (road and rail and water) and the turbulent Niger Delta region.

The minister said between 40 billion dollars and 60 billion dollars was needed for Nigeria’s infrastructure development within the next six

months to achieve the country’s desired growth objectives to drive the Vision 2020.
According to him, it was difficult for the government alone to cough out the huge resources for such investment due to other competing interests as well as the funding challenges and limited capacity to design, cost, implement and manage an investment of such magnitude within the envisaged period.

He said government was committed in its pursuit of the Public Private Partnership (PPP), and every necessary measure has been put in place to engender appropriate legal and regulatory frameworks to ensure the successful implementation of PPPs.
In his speech at the summit, Vice President Goodluck Jonathan said the Federal Government has already endorsed the desired framework for the realization of the Vision 2020 development plan, with all the state governments being encouraged to buy into the project by developing their Vision 2020 plans.

He said the framework was designed to address the challenges that hinder considerable development in the real sector growth, physical and human infrastructure, rising levels of unemployment and poverty in Nigeria.

Vice President Jonathan said other areas covered by the framework include issues of corruption, security and good governance, as well as current structural and institutional weakness in the nation’s economy.

 

THE SUN

 

Power emergency: FG, states to withdraw $5bn from excess crude

From ISAAC ANUMIHE, ABUJA
Wednesday, August 27, 2008

Federal Government on Tuesday announced that it has agreed with all the state governments to withdraw $5.375 billion from the excess crude account to meet the power sector emergency.
In his opening address at the 49th annual conference of the Nigerian Economic Society (NES) in Abuja, Minister of Finance, Dr. Shamsuddeen Usman, said already, many of the state governments had obtained the necessary approvals of the state Assemblies for their share of investment in the power sector emergency.

Describing the infrastructural need of the nation as critical, he said it was important to spend on such infrastructure as security, power, transport (road, rail and water) and the Niger Delta.
An estimated infrastructure investment of up to $40-$60 billion, he stated, would be needed during the next six months to achieve the growth objectives of Vision 2020, adding that the government alone could not meet the amount of investment required owing to funding problems and limited capacity to design, cost, implement and manage an investment of such magnitude within the envisaged period.

He, therefore, called on the private sector to be involved in form of Public Private Partnership (PPP), as the government was putting in place appropriate legal and regulatory frameworks to ensure the successful implementation of the PPP.

“The legal and regulatory frameworks have been provided by the National Assembly passing the Infrastructure Concessioning and Regulatory Commission (ICRC). The chairman and the CEO designates of the ICRC are awaiting the approval of the Senate. A draft policy statement on PPP is already in place.

President Umaru Yar’Adua recently appointed Chief Shonekan as the chairman of Infrastructure Summit that brought together policy makers, administrators and private sector. It provided an opportunity to showcase the available projects that private sector can invest in, as well as a forum for understanding better the need for increased collaboration between the private and public sectors in addressing the huge infrastructure deficit in Nigeria,” the minister said.

Lending credence to the assertion that an appropriate framework had been designed, Vice President Goodluck Jonathan said the Federal Government had approved a framework for the realization of the Vision 2020 development plan and all the state governments would be encouraged to develop their state Vision 2020 plans.

“This framework is designed to tackle problems inhibiting significant development in the real sector growth, physical and human infrastructure, rising levels of unemployment and poverty in Nigeria, as well as issues of corruption, security and the current structural and institutional weakness in the economy,” he said

 

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