The World Bank Group has approved a loan of $750m to boost Nigeria’s power sector across the nation, which will serve as additional financing for the power sector recovery performance-based operation which was first approved on June 23, 2023.
The loan was approved on June 9, 2023, making it the first World Bank loan approved under the new administration of President Bola Tinubu.
In a document published on May 19 titled ‘Nigeria – Power Sector Recovery Performance Based Operation Project: Additional Financing, it was disclosed that the parent project will end on June 30, 2023.
It was also disclosed that out of the $750m initially approved in 2020, only 72 per cent financing of $535.09m was disbursed, with the balance expected by June 30, 2023, for the parent project.
The document read in part, “This Program Paper seeks the approval of the Board of Executive Directors to provide Additional Financing to the Federal Republic of Nigeria, through an International Development Association credit in the amount of $301m and an International Bank for Reconstruction and Development loan in the amount of $449m to the Power Sector Recovery Performance-Based Operation (PSRO, P164001).
“The proposed AF will build on the tangible results achieved and lessons learned under the parent Program. The proposed AF will continue supporting the implementation of the FGN’s Power Sector Recovery Plan’s critical actions to address the next set of power sector challenges and facilitate the achievement of the FGN’s ambitious access and energy transition targets.”
The document further disclosed that the new financing would run from 2023 to June 30, 2027