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These sectors come
under the purview of the Federal Ministry of Power and Steel. The
performance of these three sectors has been below expectation for
reasons ranging from obsolete equipment to lack of funds. The injection
of capital resources has been identified as necessary for the successful
reversal of the fortunes of the sector. The individual sectoral
requirements are discussed in the following paragraphs.
Power
Sector
Government has concluded plans towards revitalization of installations
of the National Electric Power Authority, NEPA to enable it meet
its total installed capacity of 600OMW. Sufficient funds are being
injected for the rehabilitation of ageing plants and equipment.
In order to allow full private sector participation in power generation,
transmission and distribution, government has accepted to deregulate
the sector by the year 2000. This will allow local and foreign investors
to build, own and operate and/or transfer independent electricity.
All laws that inhibit private sector participation in the power
sector are being renewed with a view to, amending them and encouraging
investment. This step will complement the de-consolidadon of the
industry as far as the state-owned NEPA is concerned. The hitherto
largely over-centralised operations of this agency will be decentralised.
Guidelines and framework
for Independent Power Produces (IIPP’s) are now being put together
following the interest and applications already put forward by independent
producers from all around the Investment Opportunities exist for
hydro-power generation in Manbilla Fall, Adamava State and gbokin
fall in CrossRiver State. NEPA will readily negototiate a Memeorandum
of Understanding (MOU) with any foreign energy company to cover
the following areas:
- Development of energy resources
and infrastructures;
- Management of energy infrastructure;
- Commercialization of energy
- Training; and
- Exchange of information and experience.
It is expected that further discussions will centre on:
- Construction and Management
of power stations by private companies;
- Production of Steam and gas
turbine spare parts
- Repair and testing of power
transformers;
- Development of wind turbines
for generation of electricity;
- Manufacture of distribution
transformers and line hardware;
- Technology transfer through
joint erection of new power plants;
- Training of NEPA staff in computer
based maintenance system etc
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The
Steel Sector
Plans by the Ministry to revitalise the Steel sector are underway.
As a first step to reviving the sector, technical audit and cost
estimate for completion of Ajaokuta Steel Project are being contemplated.
The Ministry is also planning to rehabilitate the Delta Steel
Company and three in-land Steel Rolling Mills in the country with
a view to making them function effectively. Staff training and
developmetn is also being given attention because local skilled
manpower availability can motivate an investor into the industry.
These efforts are aimed at putting the sector in a state of readiness
for foreign investment.
In consonance with
the nations technical and economic cooperation policies for this
sector, some areas of joint co-operation have been identified, and
investors will be encouraged to invest in the sector. Discussions
will centre on the joint venture commercial operation of the completed
units of the Ajaokuta Steel Project. Investors will be encouraged
in the following areas:
- Iron Making Plant with capacity
to produce 1.35 metric tonnes of billets;
- Billet Mill with capacity to
produce 795,000 tonnes of billets per annum;
- Light Section Mill with capacity
to produce 400,000 tonnes of bars per annum;
- Medium Section Mill with capacity
to produce 130,000 tonnes of wire coils per annum; and
- Engineering Workshops comprising:
- The Power Equipment Repair Shop
Forge Fabrication and Rubberising Shop with capacity to produce
4,200tonnes of fabricated structures.
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The
Aluminium Sector
The Aluminium Smelter
Company of Nigeria, ALSCON, is a joint venture project in which
Nigeria owns 70% of the equity shares, while the remaining 30% is
shared between AG Ferrostaal of Germany with 20% shares and Reynolds
Inc. of US with 10% shares. The present administration is making
efforts to ensure that the aluminium smelter plant is properly funded.
It has given invitation to private investors to invest in the company
and/or take part of Nigeria's 70% shares. The plant is one of the
best and biggest in the world with the most modern technology. A
number of countries have signed or are negotiating trade and economic
cooperation agreements with Nigeria. Since the essence of these
bilateral agreements is to foster unity. boost econormic growth
and technological co-operation, foreign investors should take advantage
of existing bilateral ties and harken to the call to invest in the
ALSCON project as in other projects in the power and steel sectors.
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