Nigeria Signs $1.5B Electricity Financing Deal With the US

Nigeria Signs $1.5B Electricity Financing Deal With the US

SAN FRANCISCO, October 19, (THEWILL) – Nigeria and the US Export-Import Bank on Wednesday signed a deal that will enable Nigeria access an initial $1.5 billion in financing from the bank for investments in the country’s struggling power sector.

A statement from the US Export-Import Bank made available to the AFP quoted the bank’s chairman, Mr. Fred Hochberg, who visited Nigeria this week, as saying, "$1.5 billion is just a start.

"We want to deploy this financing as quickly as possible to help meet President Goodluck Jonathan's goals for growing the Nigerian economy by greatly expanding the availability of power in the country.

"The bank's board of directors will certainly consider additional financing if needed."

President Goodluck Jonathan has said his administration would improve Nigeria’s power generation so that it could aid in driving manufacturing, create jobs and in turn revamp the economy.

The government has chosen privatization of power production and distribution as a quicker means out of its current power mess. Foreign companies are keeping an eye on investment opportunities in the sector.

The bank said that Nigeria is one of nine countries it has identified as offering US companies the greatest opportunities for sales.

The other countries are South Africa, Turkey, India, Indonesia, Vietnam, Brazil, Mexico and Colombia.