The President/CEO Dangote Group, Aliko Dangote has said that the power sector privatisation process was done wrong and suggested that it should be reversed, Daily Trust reports.
Dangote made the assertion as a guest lecturer at the Senior Executive course 38 at the National Institute of Policy and Strategic Studies (NIPSS), Kuru, in Plateau State. He said the problem in the power sector has persisted despite privatisation because the buyers lack understanding of the complexities of the sector. He added that due to the lack of understanding of the sector, the generating and distribution companies are now holding the country to ransom.
Africa’s richest man said a core mistake was that when investors bought the power infrastructure from government they borrowed 90% of the money in foreign currency while their base income is in naira. He said this was a huge exchange risk which has led to the problems being faced today. He added that unless the Federal Government quickly decides on taking back the assets and giving them to people who have the capacity to inject money, the country may not be able to deliver on power in the long term. Read more