News

World Bank agrees to give $3bn loan to Nigeria


It has been confirmed that the World Bank has approved and ready to Nigeria a $3 billion loan for the expansion of the transmission and distribution facilities of the power sector.

This was made known by the Minister of Finance, Zainab Ahmed.

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.

Tags

Ella Chioma

Ella Chioma is an entertainment and celebrity style editor with years of experience in the industry. She is a graduate of Linguistics & African Languages from the University of Ibadan. She obtained a Diploma in Mass Communication from the prestigious Enugu State University Of Science and Technology (Esutech). She likes to write, cook and listen to soothing music. You can reach her on Email: [email protected]

Leave a Reply

Your email address will not be published.

Back to top button
Close
Close