Nigeria: Power Sector – Reform Will Reduce Cost By 40 Percent

Eromosele Abiodun

1 March 2011

Director General of the Securities and Exchange Commission (SEC), Ms. Aruma Oteh, Monday called on foreign investors to take advantage of the economic and power sector reforms in the country to maximize their returns.

Oteh who made this known at the 2011 Standard Bank West Africa Investors’ Conference held in Lagos, stated that the reforms when fully implemented will reduce the cost of doing business in Nigeria by 40 per cent.

The SEC boss who described Nigeria as investors’ paradise stressed that years of democratic practice and economic reforms helped African countries to weather recent global financial crisis.

“Because of the debt relief most African countries received in recent years, a good number of them have better debt profile than most European countries. Inflation has been reduced to the lowest minimum in most African countries, privatisation and trade liberalisation has also helped to lift African economies.

“Most African countries have implemented reforms that have helped to lift their private sector. About $4 billion is spent a year on infrastructure. Funds generated from natural resource contributes only one-thirds of Africa’s income, the rest two-thirds is from telecommunications and other source of income,” she said.

She added that the expanding workforce in Africa will help grow its Gross Domestic Products (GDP), adding that in 20 years time the top 18 African countries will have a combined spending of $1.6 trillion.

Oteh, therefore, enjoined foreign investors to rethink their investment plan and focus on Nigeria and other African countries, stressing that Africa has a huge potential for growth.

“Because we are aware of this fact, we have strengthened our legal and regulatory framework so that we can create a world class capital market and ensure effective distribution of economic gains,” she added.

Earlier in his speech, Chairman of Stanbic IBTC Bank Plc Mr. Atedo Peterside, said allayed investors fear of a possible spread of recent political development in North Africa to Nigeria.

According to him, “I do not hesitate to state that I do not foresee a similar occurrence here in Nigeria, because our circumstances differ vastly. In my opinion, what we are witnessing in North Africa and some countries in the Middle East is essentially a confrontation between angry populations and sit-tight autocratic rulers”.

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