- FBN Capital Limited has stated that investment in the power sector can be encouraged through sustainable and consistent cost reflective tariffs
- A Vice President of the firm, Abiola Baruwa, said this while speaking at a stakeholder forum focused on ‘Managing the Risk of Releasing Private Sector Capital for Investment in the Power Sector,’ during the 2015 Powering Africa conference.
Baruwa said: “The major factors foreign investors are looking at before investing in the power sector are consistent and sustainable cost reflective tariffs and a substantial de-risk of the power sector. The power sector can be de-risked by allowing competitive gas prices, the power sector regulator (NERC) ensuring consistent and stable regulation, clear direction of government’s policy on transmission (including government’s clear funding plan for transmission which needs to be executed immediately). Until these factors are properly addressed, international investors will continue to be skeptical about investing into the sector.”