The World Bank Group has given its approval for a loan of $750 million to enhance Nigeria’s power sector, marking the first World Bank loan approved under the new administration of President Bola Tinubu. The loan, identified with project ID P174622, was officially approved on June 9, 2023.
According to information obtained from the World Bank’s website, the loan serves as additional financing for the Power Sector Recovery Performance-Based Operation, which was initially approved on June 23, 2020. The parent project is set to conclude on June 30, 2023.
A document titled “Nigeria – Power Sector Recovery Performance Based Operation Project: Additional Financing (English)” published on May 19 revealed that only 72 percent of the initial financing, amounting to $535.09 million, had been disbursed. The remaining balance is expected to be provided by June 30, 2023, for the parent project.
The newly approved additional financing will be provided by the International Bank for Reconstruction and Development ($449 million) and the International Development Association ($301 million). These institutions, which constitute the World Bank, have been instrumental in extending loans to Nigeria over the years.
The loan aims to support the ongoing efforts to revitalize Nigeria’s power sector, addressing key challenges and promoting sustainable development. It signifies a significant step towards improving the country’s power infrastructure, enhancing electricity access, and promoting economic growth.
As Nigeria moves forward with the implementation of the Power Sector Recovery Performance-Based Operation, the government is expected to work in close collaboration with the World Bank to achieve the set objectives and create a more resilient and efficient power sector.
