World Bank approves $3bn loan for Nigeria

The International World Bank has approved and accepted to grant a loan of the sum of $3 billion to Nigeria. This is for the expansion of the transmission and distribution facilities and transmission network of the power sector, the Minister of Finance, Zainab Ahmed, revealed.

According to the Minister of Finance, Zainab Ahmed, the loan would be disbursed in four quarters of $750m each beginning from next year and it would be able to cover the funding gap as well as the current tariff which current investors in the sector describe as very low which can’t be compared to what is obtainable in other countries. “It will also improve our ability to pay our previous obligations in the power sector that has crystallised so that investors in the sector can go on with expanding investments in the sector,” the Minister added.

Mrs Zainab Ahmed also noted that some parts of the loan will be used for the transmission network which is as a matter of fact ‘very important’. She also added that if the government can expand the facility to $4bn, then the additional $1bn will be used for the distribution network.

“The distribution sector of the transmission network will be at the backend while the other reforms have been duly carried out. This loan is very important and it’s coming in handy because It will be a loan to the distribution companies because they are owned by the private sector and not the federal,” the minister concluded.

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