The World Bank has agreed to give Nigeria a $3 billion loan for the expansion of the transmission and distribution facilities of the power sector, Minister of Finance, Zainab Ahmed, has revealed.
According to her, the loan would be disbursed in four tranches of $750m each beginning from next year and it would cover the funding gap as well as the current tariff which investors in the sector had described as very low compared to what is obtainable in other countries.
“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,” she added.
She noted that some portion of the loan will be for the transmission network, adding that if the government can expand the facility to $4bn, then the additional $1bn will be used 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,” she concluded.
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