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Nigeria: NEC Backs State of Emergency in Power Sector
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Nigeria First (Abuja)
20 June 2008
Posted to the web 20 June 2008
Abuja
The National Economic Council (NEC) on Thursday June 19 gave support and approved financial backing for President Umar Musa Yar'Adua's plan to declare a state of emergency in the power sector.
The NEC, which is chaired by Vice president Goodluck Jonathan and comprises the 36 States Governors, the Minister of FCT, Governor of Central Bank of Nigeria and Ministers of Finance and Planning also approved the release of a total of N1.2 trillion ($10.24 billion) from the Excess Crude Account.
Of the total amount of N1.2 trillion, N628.29 billion ($5.37 billion) is to be invested to resuscitate the crumbling power sector while N569.79 billion ($4.87 billion) is to be put in the Federation Account and shared by the federal, states and local governments.
However, the N628.9 billion to be invested in the power sector is in form of equity at the ratio of Federal Government contributing 51 per cent while the 36 states would have 49 per cent.
The Council also approved the constitution of a committee under Vice President Goodluck Jonathan, who is its chairman, to monitor the investment in the power sector. Members of the committee include Dr. Olusegun Agagu (Ondo), Liyel Imoke (Cross River) and Danjuma Goje (Gombe State).
Governor Chibuike Amaechi of Rivers state said the committee "is headed by the Vice President, there are six governors one coming from each of the six geo-political zones, and the three governors who were former ministers of power, then the current ministers of gas, minister of finance, minister of state for power, attorney-general of the Federation and the Minister of National Planning, two representatives from banks, one from labour, one from the media, one from the OPTS (oil operators)".
CBN Governor, Professor Chukwuma Soludo who assured that the Nigerian Stock market was strong and viable also said: "Government is concerned about the recent volatility in the market and it was noted that while volatility happens to be a major feature around the world, but that the government, the regulatory and supervising institutions will take whatever steps that are necessary in order to preserve the recent gains in the Nigerian Stock Exchange.
"It was observed that in terms of the fundamentals, in terms of the economic conditions of the economy and the stock market, that they are very strong, strong enough to support the continuous growth of the stock market.
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"Most of the 207 companies in the stock exchange are posting very good results and still have the prospect to continuous growth. With the economy growing at seven per cent and with the prospect of growing even higher, and with the increasing liquidity in the system, the stock market has got the potential to sustain the current gains that we have".
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