Nigeria Obtains $500 Million World Bank Loan to Enhance Power Distribution

Nigeria has secured a $500 million World Bank loan to enhance power distribution. The Bureau of Public Enterprise (BPE) announced that the loan, approved in 2021, was included in the government’s borrowing plan after meeting certain milestones. The loan aims to improve the financial and technical performance of distribution companies, which have struggled since the sector’s privatization. Funds will rehabilitate networks, install electric meters, and improve service quality. This development comes after the Nigerian Electricity Regulatory Commission (NERC) raised tariffs for a section of its customers last month in an attempt to reduce the drain, via subsidy payments, on public finance. The move has seen fierce opposition from stakeholders, businesses, labor unions, and the public, and is one of the reasons why the country’s labor unions have embarked on strike.

SOURCE: NAIRAMETRICS