The Federal Government of Nigeria has approached the World Bank for $50 million in support to assist state governments in the installation of solar plants and infrastructure upgrades. This initiative is part of a broader strategy to bolster the nation’s power sector and drive economic growth.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, engaged in detailed discussions on this initiative with a World Bank delegation during a meeting held in Abuja on Monday.
The World Bank delegation was led by the Country Director for Nigeria, Dr. Ndiamé Diop, and included the Special Adviser to the President on Energy, Ms. Olu Verheijen.
According to a statement released by Mohammed Manga, the Director of Information and Public Relations for the finance ministry, the meeting aimed to explore innovative approaches to advance Nigeria’s power sector.
During the meeting, Minister Edun emphasized the importance of the World Bank-supported initiatives, such as the Power Sector Recovery Operation and the Distribution Sector Recovery Programme.
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These initiatives are designed to improve power distribution and management systems, which are critical for ensuring sustained economic growth and development in Nigeria.
A key component of the discussed programme is the rollout of 3.5 million meters to enhance power distribution. This effort is intended to support tariff frameworks, market reforms, and co-finance the Transmission Company of Nigeria’s Performance Improvement Plan.
The statement from the finance ministry highlighted that the initiative includes $50 million in funding for state solar plant pilots and infrastructure upgrades.
“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 investment as a major priority area for achieving the desired objective.”
“The initiative will strengthen plans to roll out 3.5 million meters to enhance power distribution, $50 million funding for state solar plant pilots and infrastructure upgrades, while 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 read.
Minister Edun further reaffirmed President Bola Tinubu’s administration’s commitment to repositioning the economy for Nigeria’s future. He expressed optimism that the partnership with the World Bank would yield significant benefits for all Nigerians.
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The World Bank, an international financial institution focused on reducing global poverty, offers loans and grants for various projects in developing countries.
However, many Nigerians feel bitter about government borrowing due to long-standing infrastructure decay and rising unemployment. Nigeria borrowed $2.7bn in 2023, following $2.9bn in 2022 from multilateral lenders.