World Bank releases $486m to boost electricity in Nigeria
The World Bank has approved an International Development Association (IDA) Credit and an IDA Scale Up Facility Credit in the sum of $486 million equivalent for rehabilitation and upgrading of electricity transmission substations and lines in Nigeria.
The investments under the Nigeria Electricity Transmission Project, is aimed at increasing the power transfer capacity of the transmission network and enable distribution companies supply consumers with additional power.
The World Bank Country Director for Nigeria, Rachid Benmessaoud, said in a statement on Thursday by the Senior Communications Officer, Nigeria, Olufunke Olufon, that together with other investments and policy measures, the project would contribute to ensuring adequate and reliable electricity supply that is necessary for Nigeria’s continued economic development.
Benmessaoud said that it would also support private sector participation, capacity development and better governance in Transmission Company of Nigeria and sector institutions.
“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,” he added.
The bank, quoted the Minister for Power, Works and Housing, Babatunde Fashola, as saying, “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. The Federal Government anticipates that private sector financing in the privately-owned segments of the value-chain will complement the government’s efforts in bringing better quality service to citizens.”
This project is part of the Power Sector Recovery Program (PSRP) by the Federal Government, which is a comprehensive package of policy, legal, regulatory, operational and financial interventions that will restore the financial viability of 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.
