Africa Finance Corp. to Invest in First Nigerian Power Project

Africa Finance Corp., a development bank partly owned by seven West African states, plans to announce its first investment in Nigeria’s electricity industry soon, Chief Executive Officer Andrew Alli said.

“Nigeria is becoming attractive to foreign investors,” Alli said in an interview in the capital, Abuja, today. He declined to give details of the project.

Africa’s most populous country and top oil producer needs investment of $10 billion a year to meet a target of increasing generating capacity to 40,000 megawatts by 2020, Minister of State for Power Nuhu Wya said on Oct. 14. Nigeria suffers regular blackouts as electricity supply fails to meet demand.

President Goodluck Jonathan, who’s made developing the power industry a key program of his administration, announced on Aug. 26 a plan to end state control of the sector. The economy would grow more than 10 percent a year if there was adequate power supply, according to Lamido Sanusi, governor of the Central Bank of Nigeria.

Africa Finance Corp. is involved in a wind project in Cape Verde, a 340-megawatt power plant in Ghana costing $450 million and the Bakwena Corridor toll road north of Johannesburg, South Africa, said Alli. The bank is part owned by Nigeria, Ghana, Liberia, Sierra Leone, Guinea-Bissau, Guinea and Gambia.

The bank is seeking a credit rating so it can access funds to strengthen its financing operations, Alli said on July 2. “We’re working on it,” he said today.

To contact the reporter on this story: Paul Okolo in Abuja pokolo@bloomberg.net.

To contact the editor responsible for this story: Peter Hirschberg at phirschberg@bloomberg.net.

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