February 25, 2021

World Bank approves $500m electricity loan for Nigeria

World Bank electricity loan

 

The World Bank has approved a $500 million loan to improve access to electricity in Nigeria and expand the metered network of power distributors.

The money will help distribution companies “make necessary investments to rehabilitate networks, install electric meters for more accurate customer billing and to improve quality of service for those already connected to the grid,” the Washington-based lender said in emailed statement to Bloomberg, Friday.

To qualify for funds, private distribution companies must meet various criteria including connection targets, financial management and network expansion, the lender said.

READ: Ogun signs MoU with power firm to expand electricity distribution

The loan follows the World Bank’s backing last year of a $750 million project to boost the energy sector of Africa’s biggest economy.

Nigeria lost about $26.2 billion as a result of unstable power supplies and 43% of the country’s 200 million people aren’t connected to the grid, the World Bank said.

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