World Bank Approves $3bn Loan For Nigeria

October 20, 2019
210 Views

 President Muhammadu Buhari

President Muhammadu Buhari

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.

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.

You may be interested

Man City Suffer Double Injury Setbacks
Sports
2 views
Sports
2 views

Man City Suffer Double Injury Setbacks

Webby - November 2, 2024

Manchester City manager Pep Guardiola has provided an update on the fitness of John Stones and Ruben Dias following Saturday’s…

Former Flying Eagles Star Escapes Major Injury In Belgium
Sports
Sports

Former Flying Eagles Star Escapes Major Injury In Belgium

Webby - November 2, 2024

Nigeria winger Yira Sor is expected to return to action after the international break, reports Completesports.com.Sor sustained an injury in…

Raphinha: I Decided To Remain At Barca To Prove Doubters Wrong
Sports
1 views
Sports
1 views

Raphinha: I Decided To Remain At Barca To Prove Doubters Wrong

Webby - November 1, 2024

Barcelona star Raphinha says his decision to remain with the club is meant to prove doubters wrong.Recall that the Brazilian…

Leave a Comment

Your email address will not be published.