AfDB approves $187.3m to stimulate private investment in Nigeria’s power sector

The Board of Directors of the African Development Bank Group (AfDB) on Wednesday approved an African Development Fund (ADF) Partial Risk Guarantee (PRG) programme of $184.2 million and an ADF loan of $3.1 million for capacity building to support the Nigerian power sector privatisation programme.

The bank said the PRG programme in Nigeria aims to increase the country’s electricity generation by catalysing private sector investment and commercial financing in the power sector through the provision of PRGs. The PRGs will mitigate the risk of the Nigeria Bulk Electricity Trading Plc (NBET), a Federal Government of Nigeria entity established to purchase electricity from independent power producers (IPPs), not fulfilling its contractual obligations under its power purchase agreements with eligible IPPs. This in turn will increase the comfort level of private sector financiers and commercial lenders investing in the Nigerian power sector privatisation programme.

Oando To Fund CoconoPhillips Deal From $193m Share Offer

VENTURES AFRICA – Nigerian oil marketing firm Oando Plc, is looking to fund the acquisition of CoconoPhillips’s local assets through a share offer, sources close to the deal have disclosed.

Last year, the indigenous downstream operator agreed to buy Cocono’s field – currently producing about 43,000 bpd – for $1.79 billion but has struggled to raise the required capital needed.

However, bankers close to the deal informed Reuters on Wednesday that Oando is offering a N30.75 billion ($193 million) to facilitate the acquisition process.

According to Reuters, Oando will make a one-day special placement to institutional investors, issuing 2.05 billion shares at N15 per share.

The oil marketer announced on Monday that it was delaying conclusion of deal till January, following unsuccessful attempts to secure bank loan funding.

Nigeria: Indonesia Moves to Boost Trade With Nigeria - Targets N80.4 Billion Trade Volume in 2013

The Republic of Indonesia is committed to initiatives that will facilitate increased trade between it and Nigeria, with a target of about N80.4 billion trade volume in 2013.

Director of Indonesian Trade Promotion Center (ITPC), Lagos, Mr. Pontas Tobing, stated this at a Business Roundtable meeting between a visiting Indonesia trade delegation and some Nigerian business men in Lagos.

He noted that total non-oil and gas trade between Nigeria and Indonesia stood at $448.6 million in 2012 (about N71.8 billion), with the aim of increasing the figure by 12 percent by the end of 2013 which is about $502.4 million (about N80.4 billion).

Tobing said in order to further boost trade between the countries, the Indonesian Ministry of Trade and Ministry of Foreign Affairs facilitated the establishment of Indonesian African Trade Association (IATA), an initiative of some Indonesian businessmen and African entrepreneurs whose products and services are already available in the Africa market.

US may help fund Inga project

KINSHASA — The US will consider financing part of the Democratic Republic of Congo’s $12bn Inga 3 hydropower project, Rajiv Shah, the head of the US Agency for International Development, said on Monday.

The US may add the project to a $7bn US government energy programme known as Power Africa, Mr Shah said by phone from Kinshasa, where he is meeting Prime Minister Augustin Matata Ponyo and Energy Minister Bruno Kapandji.

He was to visit Inga on the Congo River yesterday. Congo was not included in the original Power Africa list of six sub-Saharan countries.

The world’s largest economy is working with General Electric and other companies to add 10,000MW in sub-Saharan Africa in the first five years of the programme, President Barack Obama said in June. Companies will contribute about $9bn in funding to Power Africa. More than two-thirds of Africa’s population does not have access to power.

iROKOtv raises $8m in funding, total investment reaches $21m

Nigerian video on demand (VOD) service iROKOtv has raised a further US$8 million in funding, fuelling plans to move from a largely diaspora audience to dominating the pan-African market.

New iROKING CEO Jason Njoku

The new round of funding – led by existing investor Tiger Global, with Swedish company Kinnevik and United States (US) based Rise Capital also contributing – brings total investment in the company since its inception in 2011 to US$21 million, with the company saying it is “arguably … one of the most well funded internet companies in Africa today”.

“The US$8 million raised by Tiger Global, Kinnevik and Rise Capital will further fuel our expansion and help us to realise our long term goal of becoming one of Africa’s preeminent media companies,” said Jason Njoku, chief executive officer (CEO) and co-founder of iROKOtv.

ASUU Suspends Strike After 5 Months

The Academic Staff Union of Universities (ASUU) has suspended its over five months old strike.

ASUU Chairman, University of Lagos Chapter, Dr. Karo Ogbinaka told Channels Television that the union decided to suspend the strike after a marathon meeting held in Minna, Niger State capital on Monday.

In attendance at the meeting, which ran till late in the evening, were all the ASUU branch chairmen and secretaries, the national executive members of the body, coordinators and past leaders, including 56 members from 52 universities.

Dr. Ogbinaka said that, in line with procedures, the different chapters of ASUU would hold congress meetings on Wednesday to inform members and managements of the institutions of the latest development.

“We expect the students to resume and expect their members to go back to class immediately after the congress meeting and we expect the government to keep to the terms of the Memorandum of Understanding (MoU),” Dr. Ogninaka stated.