Stakeholders hinge power sector development on right policies
The need for the Federal Government to implement the right policies that would lead to the growth of the Nigerian power sector has been emphasised.
The Managing Director and Chief Executive Officer of Siemens Nigeria Limited, Mrs. Onyeche Tifase, while speaking at the company’s Industrial Customers’ Day in Lagos, on Monday, said that formulation and implementation of the right policies, would attract the required investment in the power sector.
According to her, the company has been at the forefront of power generation in Nigeria through innovative technology despite the challenging environment.
She stated: “There are certain things we can propose and there are certain things that we will continue to influence. We have been trying to advocate for changes.
“It is very challenging getting things done lately and it is very challenging for us to close the gap between private and public sector without the right policies in place. For example, manufacturers are building roads and they are addressing so many issues, such as customs, ports and immigration challenges.
“Now, what we are doing is to find out how to work within this existing system. How can we make the present system work? How can we partner with the Government to make it work? It will take time and we don’t have time. There is a sense of urgency. It will take all of us working collaboratively to make things work in the power sector.”
Speaking also at the event, the Executive Chairman/Chief Executive of Bua Group, Abdulsamad Rabiu, said that for policies to work in Nigeria, they must first be implemented.
“That is the bane of many policies related to manufacturing, power and infrastructure. From our trade and industrialisation policies, to multiplicity of tariffs to our fiscal and monetary policies amongst many others, there have been gaps between these generally well intended policy postures and their actual implementation and this has led to a less than expected enhancing of capacity utilisation and industrial growth”, he added.
Rabiu, who was represented by Managing Director, Mines Development, Bua Group Engr. Abiodun Abe, urged the Federal Government to create a sound investment environment to stimulate strong growth in the sector. “The private sector must respond positively to the government’s development programmes and the improved business environment. Banks should be encouraged to increase lending and capital inflows to increase investor confidence. Political leaders should shop for partnerships with other nations and emerging economies to provide additional sources of financing and expertise for development.
“Government and the private sectors must collaborate for the development of the manufacturing sector of the country. More investments should be proposed in the sector particularly in the growth rate of capital goods, consumer durables, and some non-durable goods. Subsequent budgets should emphasize on the manufacturing sector of Nigeria’s economy in order to sustain its growth and achieve set development goals. To revive our industries government must begin with the right policies. Manufacturing activity can only flourish in a good investment climate.
“There must be consistency in government policy. The importance of physical infrastructure, sound financial markets, and affordable credit cannot be overemphasized. Reliable power supply is key to improving Nigerian industrial productivity. Improving electricity supply is an essential step in kick-starting the large-scale extraction and development of Nigeria’s solid mineral industry.”
Chairman, Honeywell Group, Mr Dave Obray said that Nigerian population makes for a compelling market, which means we can attract significantly higher Foreign Direct Investment’s but for power situation.
According to him, capital will easily flow to markets where it is easier to make good returns on investments. “Adequate availability of hard and soft infrastructure is a prerequisite for capital inflow which will improve manufacturing and trade,” he added.
He noted that investments in power infrastructure were critical to advances in agriculture, manufacturing, trade and investment.
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