Nigeria is expected to receive the first tranche of its $3 billion loan request from World Bank as soon as discussions have reached an advanced stage and the world lender has confirmed the approval of the funds.
Reports have it that the first tranche of the loan is about $1.5 billion. According to the Senior External Affairs Officer, Nigeria, Africa External Affairs of World Bank, Mansir Nasir, the bank is currently in talks with the Federal Government.
“The Bank is currently working with the Federal Government to prepare the first operation/loan in the package of financing support discussed at the 2019 Annual Meetings in Washington.
“The first operation/loan is expected to be approved in 2020. However, this is contingent on progress being made on the ongoing preparations with the Federal Government,” Nasir told Daily Trust.
The Media Adviser to the Minister of Finance, Budget and National Planning Mr Tanko Yunusa also confirmed Nasir’s statement. He stated that the meetings were not concluded yet and that once it is done the funds would be disbursed.
Recall that Nairametrics reported when the loan was requested the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed at the annual meetings of the World Bank/IMF in Washington DC, United States of America.
The Federal Government plans to use the funds for the development of transmission and distribution networks to enhance the delivery of electricity and to address some of the challenges that the country is currently facing in the power sector.
“The $3 billion that we are trying to raise from World Bank is for financing the power sector. This financing will include, covering the cost of the gap between what is provided for in the current tariff, and the cost of the businesses,” Ahmed said.
Why this matters: Since the privatisation of Nigeria’s power sector, there have been rising issues in the sector stakeholders are familiar with. Amongst the issues affecting the sector is the lack of adequate funding.