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International Economist and Group Managing Director of TL First Group, Olu Olasode has tasked the Federal Government of to judiciously utilise the $486 million dollars fund approved by the World Bank.
The credit which was granted to rehabilitate and upgrade the Nigerian electricity transmission substations and lines, is a welcome investment to help alleviate the current issues militating against the power sector in Nigeria, the Economist added.
Responding to questions on implications on rising debt, Olasode, who is also a Chartered Accountant, stated “unlike many professional colleagues who are weary of debts, I have no problems with increasing your labilities if the resulting growth in income, capital, assets or national wealth far outweighs the debt. In essence, it should be about spending to save through better infrastructure in electricity transmission that ultimately powers economic growth.”
According to Olasode, effective utilisation of the fund can benefit small scale business owners and contribute to adequate and reliable electricity supply necessary for Nigeria’s continued economic development as an effortto ease the infrastructure constraints these businesses currently face.Electricity is a significant component of virtually any production process. As such, limited supply has the potential to, directly or indirectly, affect the economic productivity of businesses. An attendant effect is the closure of many Enterprises in Nigeria in the last five years.
He stated that the Transmission Company of Nigeria can be better empowered to ensure increased transmission network and provision of additional electricity. He further proposed that part of the funds can be used to adopt new models that tap into the vitality of the nation’s potentials. “For instance, investment can be made into solar-powered light centres that help to increase social activity and productivity of communities by generating light after sundown. These light centres can be used to power medical equipment such as an ultrasound, or refrigerators that store vaccines at medical centres.” “Transmission also has a lot to do with logistic and planning”, he continued, “for example, how effectively can we aggregate and redistribute the many dispersed power generation by privately owned organisations”.
Olasode, however, expressed concern about the sustainability of the nation’s rising debt stock, especially during a period when the country’s socio-economic development continues to be plagued by myriad of challenges.He urged the Federal Government to apply caution in contracting more debt and identify innovative ways to mitigate the current debt portfolio. Olasodesuggested that current loan funding available to the government should be deployed to tap into thenation’s creative opportunities to facilitate economic growth, resolve security challenges across the regions, address development, generate employment and reduce poverty.
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