The Department of Investment and Sector Development was created in 2008 in line with the Reform Agenda of the Federal Government in addressing the problems of prospective power Investors who would respond to the Government initiative in making electricity available to the citizenry.
The Department comprises two divisions as follows:
- Investment Division
- Sector Development Division
The Department of Investment and Sector Development is responsible for carrying out the following functions:
- Undertaking necessary investment appraisal for projects and activities related to system expansion plan;
- Coordinating all the activities of the Standing Committee on IPPs as a way of finding out the challenges hindering the take-off of the licensed IPPs since 2006, and to make appropriate recommendations to the HMP for their take-off.
- Promoting commercial and Technical practices in the Industry particularly in respect of the Public Owned Enterprises;
- Through the Public Private Partnership Unit, the Investment and Sector Development Department interfaces with the Infrastructure and Concession Regulatory Commission throughout out the lifestyle of Projects for concessioning.
- Formulating Policies, Strategies and ensuring that adequate planning of the Electricity Industry is achieved in line with the Federal Government set objectives: that is to make affordable and reliable electricity available to all Nigerians, to help drive the economic growth as well as meet the challenges that require electricity;
- Developing Strategies and Appropriate Policies that will make the Power Sector financially viable and able to facilitate economic growth; and
- Following up on Electricity Development Programmes and project implementation.
In a bid to carrying out the functions stated above, the Department has undertaken the following activities amongst which are:
- Standing Committee on Independent Power Projects:
The Department superintends over the Standing Committee on IPPs (Inter –Ministerial Committee) which was set up by Government, to provide a one-stop shop to investors. The Committee interacts with prospective investors on information they need to know as well as sell out the objectives of Government including highlights of incentives available. The membership of the Committee is drawn from the following MDAs and Government Agencies i.e
-Power Holding Company of Nigeria (PHCN)
-Transmission Company of Nigeria (TCN)
-Nigerian Electricity Regulatory Commission (NERC)
-Central Bank of Nigeria (CBN)
-Federal Ministry of Finance (FMF)
-Federal Ministry of Power (FMP)
-Federal Ministry of Environment (FME)
The Committee, since inauguration till date had met with twelve (12) licensed and sixty–seven (67) prospective Investors some of which were identified by the Committee to be Engineering Procurement Contractors (EPC). In addition some investors indicated interest in the development of the transmission aspect of the Sector.
The Committee at the end of each meeting with the Prospective Investors provides through the Secretariat for those that require them, Letters of Comfort in lieu of guarantees to International Financial Institutions,Letters of Introduction to Embassies for processing of Visas and Letters of Commendation for presentations made which serves as a medium for fast tracking the implementation of the Project.
- Study Tour of Existing Power Stations :
The staff of the Department embarked on the study Tour of some of the existing Power Stations in order to acquaint them with the knowledge of the operations of the Plants and enhance the efficiency and productivity in the discharge of their duties on issues relating to Sector Development.
- Jatropha as an Alternative Source of Power Generation
An Inter-ministerial Committee on Jatropha Curcas Development in Nigeria was inaugurated in March 2010 and held several meetings up to December, 2010. This Committee has been dormant but with the recent change in the leadership of Ministry, the Department has revisited the Jatropha Development programme as other MDAs and Organisations are doing one project or the other on Jatropha for the exploration of alternative sources of power generation. A proposal to convene an Inter-ministerial meeting on Jathropha is in the pipeline with a view to coming up with policies on Jathropha Projects in Nigeria and to come up with a National Jathropha Network for mutual support , collaboration amongst the Farmers, Researchers, Academia and the Investors.