The ongoing effort by the federal government to find a lasting solution to the nation’s energy problem may end up a barren exercise as foreign investors who have initially expressed interests in the sector have shunned the country because of their inability to extract Sovereign National Guarantee (SNG) from the government.
Unnamed investors from Canada, United States (US), Germany, China and United Kingdom (UK) are said to have expressed interest in the country’s energy sector but are insisting on getting Sovereign National Guarantee before they can come.
Mr. Reginald Odia, chairman, Infrastructure Committee of the Manufacturers Association of Nigeria (Man), said international investors have strong roles to play in the current quest to resolve the nation’s lingering energy crisis; hence they need some measure of guarantee by reason of the inclement situations in the country.
Said Odia: “In other countries of the world, even in South Africa, Sovereign National Guarantee may not be necessary. But in Nigeria, because of the nature of our economy and the environment it is important for many of foreign investors to have this guarantee just in case there is a failure. They want to be sure that they get some level of returns on their investment.”
According to Odia, SNG does not involve giving money; it involves returning their money if the venture fails. “Usually, like what the Central Bank of Nigeria (CBN) is doing now, for the small and medium enterprises (SMEs). The CBN is saying to the banks, lend money to the manufacturers and SMEs and if they fail, we will give you 80 per cent of the money.
Unnamed investors from Canada, United States (US), Germany, China and United Kingdom (UK) are said to have expressed interest in the country’s energy sector but are insisting on getting Sovereign National Guarantee before they can come.
Mr. Reginald Odia, chairman, Infrastructure Committee of the Manufacturers Association of Nigeria (Man), said international investors have strong roles to play in the current quest to resolve the nation’s lingering energy crisis; hence they need some measure of guarantee by reason of the inclement situations in the country.
Said Odia: “In other countries of the world, even in South Africa, Sovereign National Guarantee may not be necessary. But in Nigeria, because of the nature of our economy and the environment it is important for many of foreign investors to have this guarantee just in case there is a failure. They want to be sure that they get some level of returns on their investment.”
According to Odia, SNG does not involve giving money; it involves returning their money if the venture fails. “Usually, like what the Central Bank of Nigeria (CBN) is doing now, for the small and medium enterprises (SMEs). The CBN is saying to the banks, lend money to the manufacturers and SMEs and if they fail, we will give you 80 per cent of the money.
