World Bank Approves $500 Million To Support Nigerias Power Sector
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World Bank Approves $500 Million To Support Nigerias Power Sector

The World Bank announced on Friday that it had approved $500m to support the government of Nigeria in improving its electricity distribution sector.

The bank said the project would help boost electricity access by improving the performance of the electricity distribution companies through a large-scale metering programme desired by Nigerians for a long time.

It said the financial support would be provided to private Discos only on achievement of results in terms of access connections, improved financial management and network expansion.

The World Bank Country Director, Shubham Chaudhuri, said, “Improving access and reliability of power is key to reducing poverty and unlocking economic growth in the aftermath of the COVID-19 pandemic.

“The operation will help improve the financial viability of the Discos and increase revenues for the whole Nigerian power sector, which is critical to save scarce fiscal resources and create jobs by increasing the productivity of private and public enterprises.”

The bank said the Nigeria Distribution Sector Recovery Programme would help improve service quality, as well as the financial and technical performance of distribution companies by providing financing based on performance and reduction of losses.

This project complements the support provided under the Power Sector Recovery Operation approved in June 2020, according to the statement.

It said, “Specifically, it will ensure that distribution companies 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.

“It will also help strengthen the financial and technical management of Discos to improve the transparency and accountability of the distribution sector.”

“The programme will only be eligible to those Discos that transparently declare their performance reports to the public with actual flow of funds based on strict verification of achieved performance targets by an independent third party. The programme will also make meters available at affordable prices to all consumers in Nigeria, a long-pending demand of Nigerians,” said the World Bank task team leader for the project, Nataliya Kulichenko.

The World Bank said the programme would reduce carbon dioxide emissions of the Nigerian power sector by reducing technical losses, increasing energy efficiency, replacing diesel and biomass with grid-electricity, and investing more in on- and off-grid renewable energy.