Nigeria dawdles on $5b Africa Energy Bank take-off 9 months after

Nine months after winning the bid to host the $5 billion Africa Energy Bank (AEB) in Abuja, Nigeria is struggling to provide the necessary infrastructure for its take-off.

However, the newly inaugurated Managing Director of the Nigerian Independent System Operator (NISO), Abdullah Mohammed, yesterday pledged a new era of transparency, discipline and efficiency in the country’s electricity industry.

Vice President Kashim Shettima directed the Board of Directors of NISO to maintain the highest standards of integrity and expertise in carrying out its duties to ensure the seamless generation, transmission and distribution of electricity across Nigeria.

Despite assurances to other African nations that the bank would be operational by January 28, 2025, The Guardian learnt that the designated building remains unavailable, delaying the bank’s establishment.

The bank, being championed by the African Petroleum Producing Organisation (APPO) and Afreximbank, is targeting to fund oil and gas projects in Africa as the global north frustrates fossil fuel funding due to climate change.

Initially, Nigeria had proposed a building in Mabushi, but concerns over its location led to a search for an alternative.

Mabushi, though in the main city of Abuja, is not in a highbrow area or the Central Business District (CBD), where such high-profile organisations are located.

In January, sources familiar with the issue told The Guardian on conditions of anonymity that while a team of APPO members approved the building, Afreximbank expressed reservations about the location, prompting Nigerian officials to reconsider their choice.

Following this, the government identified a completed seven-story building in Wuse, Zone 5, and began partitioning some floors to accommodate the bank’s needs.

But when another team visited the site in February, it found the location unsuitable. Like Mabushi, most high-profile offices would not consider Wuse.

Considering the challenges, Afreximbank then proposed an alternative of utilising one or two floors in a nine-story building set to be commissioned by Afreximbank, strategically located around the Ministry of Finance.

The Guardian learnt that the Nigerian government is struggling to furnish the space, claiming that it initially committed funding towards securing previous locations.

APPO reportedly had a ministerial meeting last Thursday, reviewed the situation and approved negotiations with the agency in charge of Afreximbank property as the Federal Government is now working on securing terms for its use.

Amid the delays, there are concerns that Nigeria’s failure to meet its commitments could jeopardise its hosting rights.

The delay, The Guardian gathered, sparked criticism from rival African nations, including Ghana and Algeria, who previously accused Nigeria of manipulating the selection process in its favour.

MOHAMMED, during a briefing in Abuja following his official inauguration by VP Shettima, emphasised NISO’s mandate under the Electricity Act 2023 to coordinate the generation, transmission and distribution of electricity in a more reliable and accountable manner.

Thanking President Bola Tinubu and his Vice for the trust placed in his leadership, following “a rigorous and transparent selection process”, he said: “The coming on board of the NISO Board of Management will usher in these qualities that are required to make the power sector tick, just like other power sectors in bigger jurisdictions. Now, it is a journey, not a one-off business. The beginning of the journey starts today.

“We begin today, and we are going to hit the ground running. Tomorrow, we are going to Oshogbo, the National Control Centre, to make sure that our operators are aligned to our vision, mission, objectives and goals as enshrined in the Electricity Act 2023.

He said NISO’s emergence would help enforce strict adherence to market rules and the grid code, laying the foundation for a more functional power sector.

According to the VP, while expectations are high, members of the NISO board will need to utilise their collective expertise and individual capabilities to achieve the ambitious goals of Tinubu’s Renewed Hope Agenda in the country’s power sector within a short period.

Speaking while inaugurating the NISO board at the Presidential Villa, Abuja, Shettima told members of the board that while the Tinubu administration is resolute about building a resilient, transparent and investment-friendly power sector, they must actualise the mandate.

Emphasising why members of the NISO board were appointed, the Vice President pointed out that it is part of the administration’s “unwavering commitment to reforming and strengthening the Nigerian Electricity Supply Industry (NESI).”

He maintained that NISO, which is made up of the System Operator (SO) and Market Operator (MO), has a critical role to play in “ensuring the stability, reliability and security of the national grid.”

Tinubu had, last month, appointed board members of NISO with Dr. Adesegun Olugbade as the Chairman.

SOURCE: Guardian Nigeria