FG secures World Bank’s approval to borrow $3 billion

The Federal Government (FG) has secured approval from World Bank to borrow $3 billion for the expansion of the power transmission and distribution networks in the country.

Speaking with newsmen on the outcome of Nigeria’s participation at the annual meetings of the World Bank/International Monetary Fund in Washington DC, the Minister of Finance, Budget and National Planning, Zainab Ahmed, who made the disclosure, said the loan would be disbursed in four tranches of $750 million each, beginning from next year (2020).

The loan, according to Zainab, would cover the funding gap as well as the current tariff that power sector investors described as very low compared to what was obtainable in other countries.

 

“We had very productive meetings with the World Bank Group Country Power Sector Team on Nigeria for the power sector recovery programme, wherein we received an update on the outstanding issues covering sustainable fiscal support, policy and regulatory environment, operational efficiency and infrastructure investment possibly under a programmatic approach.

“We identified the imperative of solving two critical problems, which are operational efficiency and revamping the associated infrastructure in the power sector to ensure the overall success of the interventions in the power sector. The minister said