The Federal Government has sought the assistance of the World Bank for $50m to support state governments in the installation of solar plants and infrastructure upgrades.
The Minister of Finance and the Coordinating Minister of the Economy, Wale Edun, advanced conversations on the initiative when he met with a World Bank delegation in Abuja on Monday.
The team was led by the Country Director for Nigeria, Dr Ndiamé Diop, while the Special Adviser to the President on Energy, Ms Olu Verheijen, was in attendance.
A statement signed by the finance ministry’s Director of Information and Public Relations, Mohammed Manga, said the meeting was held to discuss innovative ways to drive Nigeria’s power sector forward.
The minister said the meeting focused on World Bank-supported initiatives, including the Power Sector Recovery Operation and the Distribution Sector Recovery Programme, aimed at improving power distribution and management systems to ensure economic growth and development in the nation.
Edun said the programme would ensure the rollout of 3.5 million meters to enhance power distribution and support tariff frameworks, market reforms, and co-financing the Transmission Company of Nigeria’s Performance Improvement Plan.
The statement read, “In its renewed determination to drive economic growth and development in the country, the Federal Government has continued to engage with relevant stakeholders to boost power sector investment as a major priority area for achieving the desired objective
The initiative will strengthen plans to roll out 3.5 million meters to enhance power distribution, $50m funding for state solar plant pilots and infrastructure upgrades, while measures to support tariff frameworks, market reforms, and co-financing the Transmission Company of Nigeria’s Performance Improvement Plan.
This collaboration aims at strengthening Nigeria’s power sector, enhancing energy access, promoting economic growth and development, improving job creation as well as poverty alleviation in line with the Renewed Hope Agenda of the present administration.”
He further reaffirmed President Bola Tinubu’s administration’s commitment to repositioning the economy for the future of Nigeria.
The statement added that the minister and the World Bank delegates expressed their commitment to working together towards achieving these goals for the benefit of all Nigerians.
The World Bank, a prominent international financial institution dedicated to reducing global poverty provides loans and grants to developing countries for a wide range of projects, including infrastructure development, education, healthcare, and environmental sustainability.
However, for many Nigerians, long years of infrastructure decay and increased unemployment have triggered an increased feeling of bitterness whenever they hear the government’s intention to borrow.
Nigeria has been a top recipient of fresh loans from multilateral lenders, borrowing $2.7bn in 2023 from about $2.9bn released to the country in 2022.
