World Bank approves $500m facility to improve Nigeria’s power sector

Alexander Davis | ConsumerConnect

For the country to facilitate necessary investments towards enhancing the lot of the much troubled power sector, the World Bank has approved a $500 million loan facility to boost access to electricity in Nigeria and expand the metered network of power distributors.

The Washington-based global financial institution in an e-mailed statement Friday, February 5, 2021, disclosed the fund would enable the country’s electricity distribution companies (DisCos) to “make necessary investments to rehabilitate networks, install electric meters for more accurate customer billing and to improve quality of service for those already connected to the grid.”

According to the World Bank, to qualify for funds, private distribution companies must meet various defined criteria, including connection targets, financial management and network expansion.

It is noted that the fresh loan is sequel to the World Bank’s backing of a $750 million project to boost the energy sector of Africa’s biggest economy last year.

The Bank stated that Nigeria lost about $26.2 billion as a result of unstable power supplies and 43% of the country’s 200 million people aren’t connected to the grid.

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