Power Generation:Banker Seeks Private Initiative
By Ayodele Aminu and Amarachukwu Ona
As Nigeria's power generation continues to deteriorate by the day, a call has gone to the Federal Government to encourage both state and private sector initiatives in power generation.
Managing Director/Chief Executive Officer, Metropolitan Bank Limited, Mr. Muyiwa Bakare made this call in Lagos at the July 2004, Financial Correspondents Association of Nigeria (FICAN) forum.
"Power is another of the plethora of issues that has defied solutions and the problem has even assumed a legendary status. The projected energy demand in 2005 and 2010 are 9,780MW and 20,000MW respectively, while the present output level which is fluctuating between 2000MW and is a far cry from the about 6000MW demand.
"Of course the reality of the matter is the uncertainty of achieving the projected output. The government must ensure that the problem is resolved and more importantly give more encouragement to some state government and private sector power generation initiatives that is rising," the Metropolitan Bank boss stressed.
Speaking on "Economy: Creating An Enabling Environment," he listed the most important ingredient that will foster an enabling environment in the country to include rule of law, provision of basic infrastructure as well as the revival of the middle class.
He maintained, "the stagnation that has been caused by these anomalies needs extreme and concerted attention so as to be able to attract and sustain whatever foreign investment interest that must have been courted so far by this administration."
The top-flight banker noted that it is an empirical fact that the state of any country's transportation system is reflective of the way that country's economy will be shaped.
"For example, the country's rail system has been in a comatose state and we all can remember with nostalgia its importance and impact on the economy. The state of our roads is another issue entirely, the adverse effects both in economic and social spheres has been undoubtedly monumental," he lamented.
He however noted that the present government has demonstrated a profound sense of seriousness in tackling some of these endemic problems.
"Taking a cursory look at some of the initiatives; the present economic team have no doubt made giant strides in policy formulation and the seriousness and promptness at which issues are tackled and resolved and thereby germinating a gradual measure of confidence in the government and the various fiscal policies.
"The 2004 budget is a good reference point with its clear cut focus and objectives and devoid of any ambiguity," he disclosed.
A lot he however emphasized is still being expected from the government especially if President Olusegun Obasanjo is able to fulfill his promise of achieving 80 per cent budget implementation target and ensuring that at least 80 per cent of the budget votes is released."
While maintaining that another critical partner in the objective of achieving enabling environment for growth is the private sector, he declared that the performance of this sector would be extremely beneficial to the economy through domestic investment, job creation and increased purchasing power.
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