Federal Government seeks $50m World Bank loan for solar projects, prepaid meters and infrastructure upgrades

Tuesday, July 16, 2024 -The Federal Government has sought the assistance of the World Bank to provide funding worth $50 million to support state governments for the installation of solar plant pilots and infrastructure upgrades. 

 The Minister of Finance and Coordinating Minister of the Economy, Wale Edun spoke on the initiative while meeting with a World Bank delegate on Monday, July 15, in Abuja. 

 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 Director of Information and Public Relations, Finance Ministry, Mohammed Manga, said the aim of the meeting was to discuss innovative ways to drive Nigeria’s power sector forward. 

 The minister said that 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 initiative will strengthen plans to roll out 3.5 million prepaid metres to enhance power distribution. 

 “$50 million funding for state solar plant pilots and infrastructure upgrades, with 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,” the statement added. 

 Edun further reaffirmed the commitment of President Bola Tinubu’s administration to reposition the nation’s economy. 

 Recall that just this year, in May precisely, it was announced that the FG had secured a $500m World Bank loan to bolster electricity distribution

 In June 2024, the Federal Government said it is seeking a $500m loan from the World Bank for rural road infrastructure and agricultural marketing

 Before then, in March 2024, it was disclosed that the Federal Government was in talks with the World Bank to complete the processes of obtaining over $1bn in loans to address Internally Displaced Persons and boost agriculture in the surroundings of IDPs

 Then, in April, Minister of Finance and coordinating minister of the economy, Wale Edun announced that Nigeria has secured a $2.25bn World Bank loan with a 1% interest rate

 Nigeria has been a top recipient of fresh loans from multilateral lenders, borrowing $2.7 billion in 2023 from about $2.9bn in 2022.