A presentation on the existing opportunities of the power sector in Nigeria. We made use of an hypothetical company which definitely sounds familiar but we employed existing world bank mitigation tools.

1. Private Direct Investor(Active Investmentstrategy)
Hypothetical multi-national company: TonyStark Energy Solutions (TSE)
Company Description:Tony Stark Energy, Inc.,commonlyreferredtoas Stark Energy, isan American
powerand energycompany headquarteredinLosAngeles,California,thatsupplies electricityinpartsof
Richmond,NewHampshire ,Massachusetts,Hawaii,Connecticut,Maryland andsupplies natural gasto
parts of NewJersey,VermontandRhode Island.
INVESTMENT OPPORTUNITY:Natural gas pipeline&powergeneration(Power)
EMDEs (Countrywere such opportunity for expansionexists):Nigeria
The country Nigeriahasimmense potentialsasitisthe thirdlargestGDP in Africaaccordingto World
Bank reports.It’s clearthat the Powerandservices sectorsare gearingtowardsAfricabecause the local
firmslackthe technology/expertise tofullyprovide the servicesneededtoefficientlyachievethe
sustainable developmentgoals.There isamassive opportunityinthe Powersectorbecause currently
Nigerialacksstable electricitywhichissurprisingbecause there are sufficientvolumesof Gasand
natural resourcestoservice these sectors .i.e.thisisasa resultof PoorDomesticResource Mobilization
(DRM).We have considered variousinvestmentoptions,the ideal investmentwouldbe abrownfield
investmentwithanexistingNigerianFacility/Company.The advantage of thismode of Investment isthe
eliminationof the long/costly processes involvedinobtaining licensesaswell asbuilding anew facility
fromthe ground. Before makingthe final decisiontoinvestinNigeriaPowersector,we made use of
WorldBank tool referredtoas the countryPrivate SectorDiagnostic(CPSD) tohelpidentifysectoral
opportunities. Alsoourteamsof analystsatStark Energyhave made necessaryresearchandwe
obtainedthatthe Nigerianfirmhasa satisfactoryfacilityandwe don’tneedtoincurhighcostsin
upgradingthe facility. The problemswe have observed are thatNigeriaearns72% in remittancesfrom
total receipts;the revenuesearnedinpublicsectorsare movedoutof the countryinform of Illicit
Financial flows(IFFs) andthere isaneedforbettergovernance.Toachieve suchthere isneedto
incorporate ESG criteriaintonations,company’sstrategy. Inaddition,the NigerianInvestment
PromotionCouncil (NIPC) hasbeenstrengthenedtoenableitserve asa one stopoffice forclearingall
the requirementsforinvestmentinthe country. “The tariff structure isbeingreformedwithaviewto
boostinglocal production.Governmenthasintroducedanew visapolicytoenable genuine foreign
investorstoprocure entryvisato Nigeriawithin48hoursof submissionof requireddocuments.Existing
“expatriate quota”requirementforforeignnationalsworkinginNigeriaisinthe processof being
replacedwith“WorkPermit”whichwill be administeredbythe NigerianInvestmentPromotionCouncil
(NIPC)”asreportedbythe NIPCin2019.
There are obstaclestobe expectedwhenembarkingonsucha Large scale Investmentwiththe potential
to affectthe whole nation.There are riskstobe considered;economicrisks,political risks,climate risks,
regulatoryrisks. The needtoimplementthe Integratedfinancingframeworks(IFFs) provide national and
local governmentsaframeworktoprovidesneeds,accessandevaluate all resources,place themona
scale of preference toevaluate progress.ThiswilldirectlyaffectTSEoperations. Once thisis
implemented withthe helpof WorldBankwe are able to mitigate the economicrisksassociatedwith

2. operatingin a EMDEs (Nigeria). ToSolidify TonyStark Energy(TSE) participationinthe private sectorin
Nigeria,there isaneedto co-operate withthe WorldBankGroup to implementthe Private Sector
Window(PSW) whichplaysanimportantrole fordevelopingeconomiestoaccessForeignDirect
Investments(FDI). The PSWhasthe creditfinancingfacilitytoenableacountryto be economically
efficient,allocation-allyefficientandInformation-allyefficientwhichare the key featuresenroute toa
functional financial systemwhichleadstoachievingthe SDGs. TonyStark Energy dealswiththe Market
risksby stayingliquidtotake advantage duringperiodsof marketdislocationwheremarketsare least
efficient. Anothersustainablesolutionis infusingEnvironment,Social andGovernance objectives inour
missionandvisionwhichhelpstoachieve returnsinthe mediumtolongterm.
STRATEGIC PROGRAMS TO IMPLEMENT ESG INVESTMENT PRINCIPLES
Tony Stark Energy (TSE) offersavarietyof programs andresourcesfor its customersandstakeholders.In
recentyears,ithas become more obviousthattakingmaterial ESGissuesintoconsideration in
investmentstrategiesandactive ownership isanintegral partof an investor’sfiduciary duty(actingin
the bestinterestof the ultimate beneficiaries;consumers).We have createdand organized categories
as, "For Rentsor Lease","ForResidential orCommercial Owners","ForSmall &Medium scale
Businesses","ForCommercial &Industrial Owners","BusinessPartners orJointVenture","Investors",
"Corporate Social Responsibility(CSR) Activities".All thisintendtoimpactthe society. Examplesof such
resourcesinclude:
 “TSE-LOVE” Program,whichofferseligible customersaspeciallytrainedrepresentative and
advice aboutgovernmentaidprograms,safetytips,andwaystosave moneyonone'senergy
bill.
 Stark Energy’sSolutionsutility portfolioconsistsof ahydroelectricsystem, includingpart
ownershipof PumpedStorage,windfarms,nuclearpowerplant,andcoal-firedplantsand
natural gas. All thisare diversifiable policies/sub-sectorstoachieve Sustainable Development
goals. There are loopholesinNigeriawhichcanbe showninthe 32.8 times of poweroutageson
average in a monthaccording to WorldBank data.
 QuarterlyBillingPlan,whichallowsseniorcitizens,whosebillsare lessthan$400 a year, to
receive billsonce everythree months(inMarch,June,September,andDecember),ratherthan
once a month.
 AnotherStrategyisclearlystatinginthe JointVenture agreementwiththe Nigerian firmand
enforcesthe linkbetweenassetscontributionandownershipstakeshasbeenclearlydefinedto
avoidconflictinthe Jointventure agreement.TSEwill contribute 60% of the capital;profit&
loss,additional capital isalso60% while the Nigerianfirmquotais40% inthe necessarycriteria’s
above.
 Alsowe have made a contingencyplanora planB to ensure thisjointventure isasuccess.There
are performance metricswe have setinplace andwe have engagedthe servicesof athirdparty
Auditfirmtoconduct valuationstoavoidfuture conflicts.
 All these effortsgoalongway infinancingthe $790bn requiredinachievingSDG7by 2030 as
reportedbythe International FinanceCorporation(IFC),everyone hasaKey role to play.

3. Figure 1: Estimates of unmet investment demands in EMDEs
Source: IFC and other sources
HELPFUL LINKS & SOURCES
 https://unctad.org/en/PublicationsLibrary/wir2019_en.pdf
 https://www.ifc.org/wps/wcm/connect/corp_ext_content/ifc_external_corporate_site/annual+
report/download
 https://public.tableau.com/views/Bigpictureoftotalresourcereceiptsbyyear/Byyear?:embed=y&:
display_count=yes&publish=yes&:showVizHome=no
 https://data.worldbank.org/indicator/IC.ELC.OUTG?locations=NG