NIGERIA - Nigeria plans to use 400bn naira ($2.6bn) from its pension funds to encourage foreign investment in its power industry, central bank governor Lamido Sanusi said.
The bank's role will likely be to "provide the comfort and the guarantees to allow the pension funds to release the money to viable and eligible power projects," Sanusi said.
President Goodluck Jonathan last month announced a plan to end the state power monopoly and expand electricity generation through private investment.
The government will sell 11 distribution units of Power Holding Co. of Nigeria and allow private companies to build gas-fired, coal-fuelled and hydroelectric plants, Jonathan said.
Blackouts are a daily occurrence in Nigeria, where demand for electricity is almost double the current supply of 3,000 megawatts. The West African nation is the continent's most populous, with 140 million people. The government wants to increase output to 14,019 megawatts by 2013.
Out of about 2trn naira of pension funds in the country, the Central Bank of Nigeria is working with the Pension Commission "to see how we can unlock about 400bn of that into power infrastructure," Sanusi said.
Nigeria could achieve an annual growth rate of 10% as the government improves the country's power and transport capacity, Finance Minister Olusegun Aganga said on September 3.
Growth was 7.4% in the first half of the year, compared with 5.9% in the same period last year, he said.
The Pension Protection Fund (PPF) is consulting on proposals to charge a "risk reflective" levy for commercial defined benefit (DB) consolidation vehicles.
The funding gap across FTSE 350 schemes could be slashed by as much as £275bn if schemes look beyond traditional ways of creating value. Victoria Ticha examines how
There will be "many flavours" of defined benefit (DB) consolidators but consolidation will only be the right answer for a minority of schemes, Alan Rubenstein says.
Work and Pensions Committee (WPC) chairman Frank Field has questioned the regulator on what lessons it can learn from the experience of the Kodak Pension Plan No.2 (KPP2).