World Bank Approves $3bn Loan For Nigéria

The Minister of finance and budget, Zainab Ahmed has said  the World Bank has agreed to give Nigeria $3 billion loan for the expansion of transmission and distribution facilities of the power sector.

Ahmed disclosed this on Sunday while addressing journalists at the annual meeting of the International Monetary Fund (IMF) and World Bank Group in Washington DC

“This financing will cover the gap between the current tariff and the actual cost of generating electricity,” she said.

“It will also enhance our ability to pay previous obligations in the sector that has crystallised so that investors in the sector can go on with expanding investments in the sector.”

Ahmed hinted further that the loan may be expanded to   $4 billion adding that to $3 billion  loan will be released in four portion of $750 million each. 

“Some portion of the loan will be for the transmission network and if we are able to expand to $4 billion then the extra $1 billion will be for the distribution network.”

“The distribution sector will be at the backend when the other reforms have been carried out.
“It will be a loan to the distribution companies because they are owned by the private sector.”

Ahmed noted that a team from Nigeria will visit the  bank in April 2020 to get approval for the release of the first portion  of the loan.