World Bank to grant FG’s $1BN request for Nigeria’s power sector

The Federal Government of Nigeria and The World Bank came to an agreement on Wednesday in Abuja, on the necessary steps to be taken before the presentation of Nigeria’s Request for $1BN grant to the Executive board of The World bank.

The World bank‘s country Director for Nigeria; Rachid Benmessaoud stated that ” The world bank recognises the critical importance of the Power sector to Private sector financing and investment, and we will continue supporting the government’s effort to implementing its Power sector Recovery Programme, thereby de-risking the sector for much needed private capital.”

The world bank noted that the Federal Government has shown a strong momentum in the Power sector of Nigeria, and the government’s commitment to taking the critical next steps would serve as the basis in which the performance based loan would be presented to the World bank’s Board of Executive Directors.

Part of the statement issued after the meeting by the World bank reads:

” The World bank delegation informed the FG that it was pleased with progress in implementing the early actions of the PSRP.

” The World bank is committed to assisting the FG with programme implementation, working with the PSRP Implementation Monitoring Team, which reports directly to the Vice President of Nigeria.”

” The World bank will continue the preparation of the proposed $1bn performance based loan to support the programme. The Federal government and the World bank group agreed on the necessary steps to present the PBL to the World bank’s Board of Directors for their consideration.”

Vice President, Yemi Osibanjo was quoted to have said;

“This administration is fully committed to implementing the PSRP. We believe that the PSRP is the clearest pathway to reform the Power sector and its success is contingent in a strict adherence to performance and Programme Implementation monitoring, which I continue to give a priority from my office.”

PSRP is an intervention that we have been working on in collaboration with the Federal ministry of Power, Works and Housing and the World bank”

The Minister for Power, Works and Housing; Mr. Babatunde Fashola was reported to have said that; the Federal Government was committed to addressing the challenges in the Power sector as part of its efforts towards achieving economic recovery and accelerating growth.

The Minister of Finance, Mrs. Kemi adeosun was also quoted. She said ” We are very confident that this laudable and vital programme will make a fundamental difference in the economy in particular and the country in general”

The World bank affirmed its commitment to supporting the Federal Government’s Powers Sector Recovery Programme on which the grant will be spent.