Nigeria plans to start building a $5.8bn hydro-power plant in the eastern Mambila region this year, after it agrees on loan terms with the Export-Import Bank of China. "We hope to break ground this year if we can conclude the financing," power, works and housing minister Babatunde Fashola said in a January 23 interview in the capital, Abuja. "Contracts are in place. We are good to go." Fashola told reporters in August that the Chinese lender would finance 85% of the cost, and the Nigerian government the rest. China Civil Engineering Corporation will build the 3,050MW power plant over five years, and the facility will include four dams measuring 50m to 150m high, and 700km of transmission lines. Nigeria, a country of 180-million people living with daily power cuts, is looking to expand electricity generation to drive growth after the economy contracted in 2016 for the first time in 25 years. Fashola, a former governor of Lagos State, the nation’s commercial hub, was appointed in 2015...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.

Questions or problems? Email or call 0860 52 52 00. Got a subscription voucher? Redeem it now