Address Critical Challenges Facing Developing Nations-Aduda To ADB

Edited By Florence Adewale

Permanent Secretary, Ministry of Petroleum Resources, Amb. Gabriel Tanimu Aduda has emphasized the urgent need for development banks to address the critical challenges faced by developing nations, particularly in Africa. It

This is contained in a statement in Abuja.

According to the statement, Aduda stated this at a meeting with African Development Bank consultants, who visited him as part of engagements with critical stakeholders on the Nigeria Economic Support Reforms Program/Appraisal Mission.

The statement explains that the team had come to discuss budget policy support, with a specific focus on the power sector.

It says, Ambassador Aduda expressed frustration at the prolonged discussions and technical assistance provided by development partners such as IFC, IMF, World Bank, and the AFDB, adding that Nigeria was well aware of its challenges and immediate needs, without requiring external guidance to reiterate what was already known.

In the high-level discussions that followed, the statement says the Permanent Secretary outlined four key considerations in the energy sector where investments were needed, Power infrastructure and expansion of national transmission grid lines. Gas infrastructure- Building of trunk and distribution pipelines across the country for domestic ingestion of gas.

The statement explains that on payment of gas arrears, Aduda informed them that the government has made appreciable progress on the issue and would soon be presenting a model for repayment to Mr. President for approval in the manner of either incremental production or tax credits to producers for pay back over time.

It adds that on gas pricing, he also reveals that the Ministry was working on the matter with the belief that the pricing template could not just be a one-cap-fits-all affair and added that the Ministry will have the willing buyer-willing seller cap with strategic gas-based industries rates which may involve some form of government intervention as an incentive.

According to the statement, Aduda emphasizes the importance of attracting investors to seize these opportunities, with a focus on creating mutually beneficial partnerships and proposed tolling the new power grid and gas pipelines to facilitate investors’ payback, while ensuring affordable access to gas for Nigerian households and potential exports.

The statement stresses that the Permanent Secretary emphasizes that the success of the endeavor would hinge on bankable feasibility studies that could pave the way for investments in gas and power infrastructure.

He expresses a willingness to collaborate with development partners to achieve these objectives.

PR/Florence