Nigeria gets $486m World Bank credit for power sector
World Bank has approved a 486 million dollars credit facility to Nigeria for power grid improvements, the lender said on Friday. “The investments under the Nigeria Electricity Transmission Project will increase the power transfer capacity of the transmission network and enable distribution companies to supply consumers with additional power,” the World Bank said.
Nigeria’s power sector is often criticised by economists for holding back the country’s economic growth.
Businesses and households are subject to frequent blackouts, and many depend on their own generators that are expensive to run.
The Bank said the investments, which are covered under the Nigeria Electricity Transmission Project, will increase the power transfer capacity of the transmission network and enable distribution companies to supply consumers with additional power.
“Together with other investments and policy measures, the project will contribute to ensuring adequate and reliable electricity supply that is necessary for Nigeria’s continued economic development,” the bank noted.
“The Federal Government is committed to addressing the challenges in the public-owned transmission network and the financing being provided by the World Bank under the Nigeria Electricity Transmission Project power sector underlines this commitment,” said Babatunde Fashola, SAN, minister for Power, Works and Housing in Nigeria.
The Bank explained that the project is part of the Nigerian Federal Government’s Power Sector Recovery Program — a comprehensive package of policy, legal, regulatory, operational, and financial interventions that aims to restore the financial viability of the power sector.
The measures that will be implemented through 2021 are aimed at improving transparency and service delivery and re-establishing investor confidence in the sector.
“The Nigeria Electricity Transmission Project will help address key bottlenecks in the transmission network and improve access to affordable and reliable electricity service to citizens,” said the World Bank Country Director for Nigeria, Rachid Benmessaoud.