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 when he met with a World Bank delegate on Monday 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 meeting was held 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 programme would ensure the rollout of 3.5m prepaid metres to enhance power distribution and support tariff frameworks, market reforms and co-financing the Transmission Company of Nigeria’s Performance Improvement Plan.
The statement read, “In its renewed determination to drive economic growth and development in the country, the Federal Government has continued to engage with relevant stakeholders to boost power sector investments as a major priority area for achieving the desired objective.
“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.
The statement added that delegates from both sides expressed their commitment to working together towards achieving these goals for the benefit of all Nigerians.
The World Bank, a prominent international financial institution dedicated to reducing global poverty, provides loans and grants to developing countries for a wide range of projects, including infrastructure development, education, healthcare and environmental sustainability.
Nigeria has been a top recipient of fresh loans from multilateral lenders, borrowing $2.7 billion in 2023 from about $2.9bn in 2022.