BPE, Indian Group Work out Modalities for Investments in Nigeria

Ndubuisi  Francis in Abuja

The Bureau of Public Enterprises (BPE) and a leading global player in steel, mines and infrastructure, Jindal Steel & Power Limited (JSPL), a member of India’s OP Jindal Group, have set up a joint committee to fashion out modalities for investments in Nigeria.

The BPE Director General, Mr. Alex Okoh, has already assured that his agency will collaborate with JSPL in its areas of interest to invest in Nigeria.

Consequently, a joint committee to work out modalities has been set up with the Director, Industries and Services, Mr. Yunana Jackdel Malo heading the BPE’s team while Mr. Mukesh Sharma will head the JSPL’s team.

Speaking when he received a delegation from the Indian group, led by its Vice Chairman, Mr. V. R. Sharma, which was on a courtesy visit to his office, Okoh said there were a lot of potential in the country in areas of interest for the group.

The BPE, in a statement said Okoh cited among others, the planned concession of the Zungeru Power Plant which has the capacity to generate about 700 megawatts (mw) of electricity when operational, adding that already, the federal government had procured the services of a transaction adviser for its eventual concession.

Okoh revealed that the planned concession of the Zungeru Dam would be modelled after that of Kainji and Jebba Dams’ concession and that the successful concessionaire would handle it for a period of 30 years.

On another area of interest for the group (steel), Okoh noted that although the three steel rolling companies in the country – Jos, Katsina and Osogbo had been privatised, they were not living up to expectation and that any effort to rev up the sector would be supported.

He also informed the investors that power, which is their main strong hold, has openings in the country as the federal government was at the verge of privatising five of its 10 National Integrated Power Plants (NIPPs) which have the combined capacity to generate between 2,300-2,500 megawatts.

On the Transmission Company of Nigeria (TCN), Okoh said despite the unbundling of the power sector by the federal government in 2013, resulting in 11 power distribution companies (Discos) and six generation companies (Gencos), TCN was still being retained by the federal government, although plans were underway to unbundle it for more efficiency.

Earlier, the Vice Chairman of the Group, Mr. V. R. Sharma had said the courtesy visit was to afford the group the opportunity to have firsthand information on areas of investment in Nigeria.

He noted that Nigeria was the largest economy in Africa which his group intends to cash in on the vast potentials to invest in mines, hydro power and other areas of interest.

The Group was accompanied on the courtesy visit by Nigeria’s High Commissioner Accredited to Bangladesh, Nepal and Sri-Lanka, Ambassador Ahmed Sule.