FOR THE RECORD: Blocking Nigeria From Coal-Fired Power Is Hypocrisy, Adeosun Tells Western Powers

Nigeria’s Minister of Finance spoke on Wednesday in Washington, U.S.A. during a discussion on importance of addressing infrastructure gaps in developing countries at the World Bank, International Monetary Fund Annual General Meeting

Kemi Adeosun, minister of finance, says it is hypocritical of the west and multilateral institutions to tell Nigeria not to use coal-fired power, which drove western industrialization.

GRAPHITTI NEWS report based on TheCable/NAN filings continues:

Speaking at the International Monetary Fund (IMF) discourse on infrastructure in Africa, Adeosun recalled that western powers recently blocked a coal to power project in Nigeria.

“The case, if you look at the numbers of business cases in Africa, is quite a huge one. Yes, we do need macroeconomic stability. We also do need consistency of policies by the multilateral institutions and western countries,” she said.

“Let me give you an example: In Nigeria, we have coal and it doesn’t take a genius to work out what it will take to get coal-fired power. Yet, we are being blocked. I think there is some hypocrisy in that.

“We have an entire western industrialization that was built on coal-fired energy and that is the competitive advantage that has been used to develop Britain, where I grew up.

“Now, Africa wants to do it, and they saying it’s not green, we can’t do and that we should go and do solar, wind, which are the most expensive power projects.”

Adeosun, who spoke at Jack Morton Auditorium, George Washington University, Washington, said there must be a level playing field in conversations around infrastructure.

“The west cannot say after polluting the atmosphere for 100 years, and when Africa wants to explore its resources, they say no.

“Yes, we would come up with bankable projects and we would behave ourselves, but I think we also need to be firm.

“If we want to stop coal, those who started it over 200 years ago, should first stop using coal before telling us to stop. This is because by doing so, you are only pushing us to the cycle of underdevelopment.”

IF LOOTED FUNDS ARE RETURNED IN TIME, WE’D RATHER NOT BORROW

Adeosun said Nigeria would rather not borrow at this time if looted funds sitting in America, UK and Switzerland are returned in good time.

“Looted funds are not sitting in Nigeria; they are sitting in Britain, Switzerland, in America. We are getting much more cooperation since President Buhari came in,” she said.

“They are significant sums. I think in Switzerland, we have US$321 million, which has been there for 17 years with no interest. Yet, we are borrowing in billions, and that is just from one person that looted the treasury.

“So we are getting better cooperation. We would rather not borrow; we’d rather just have the stolen monies returned. But I must say that there has been much more cooperation with this administration.”

LENDERS NOW WILLING TO LEND US MONEY

Adeosun said lenders were starting to respond positively to Nigeria, debunking all speculations that lenders were not willing to give money to Nigeria due to poor credit ratings.

“The feedback we are getting from lenders has been positive, because this is what they’ve wanted Nigeria to do for many years.

“The problem with Nigeria in the past is that even when oil prices were very high, as high as US$100 per barrel, we weren’t investing in our infrastructure.

“It really isn’t about the quantum you can borrow, how much you can borrow; it’s about how well you spend it. One of the things we’ve done is really sit down and work out the problems in our financial management, block the leakages.”

Adeosun meets AfDB, World Bank presidents - Inside Business Online

Nigeria Accuses Europe, Others Of Blocking Efforts To Build Power Plants

Meanwhile News Agency of Nigeria reports that the Nigerian government has accused western powers of being a stumbling block to Nigeria’s effort to improve its electricity output through the use of coal.

The Minister of Finance, Kemi Adeosun, made the allegation on Wednesday in Washington, U.S.A., during a discussion on the importance of addressing infrastructure gaps in developing countries at the World Bank, International Monetary Fund General Meetings.

She said improving power supply was the cornerstone of the Buhari administration, towards economic development, but said Nigeria was not getting support from western nations.

“We want to build a coal power plant because we are a country blessed with coal, yet we have power problem. So it doesn’t take a genius to work out that it will make sense to build a coal power plant,” she said.

“However, we are being blocked from doing so, because it is not green. This is not fair because they have an entire western industrialization that was built on coal-fired energy.

“This is the competitive advantage that was used to develop Europe, yet now that Nigeria wants to do it, they say it’s not green, so we cannot.

“They suggest that we use solar and wind, which is the more expensive. So yes, Africa must invest in its infrastructure, but we must also make sure that the playing field is level,” she said.

Mrs. Adeosun said that in spite of the need for foreign borrowing to finance the country’s infrastructure gap, the strategy was to get the cheapest money.

She said Nigeria’s debt to GDP remained very low but that the cost of servicing those loans was high.

“Right now, we are being very conservative about our debt and we are trying to get the cheapest money possible from multilateral agencies,” the minister said.

“We are working very hard to make sure that we get multilateral funds first before we go to the euro bond market, which is a little bit more expensive.”

She added that the country’s strategy was to get public private investments because where Nigeria dedicated five years’ full budget to bridging infrastructure gap, it would still be insufficient.