FG Turns to World Bank for $50m Loan to Boost Solar Energy, Prepaid Meters

Wale Edun

Nigeria Eyes $50m World Bank Funding for Solar, Prepaid Meter Initiatives

FG applies to the World Bank for a $50 million loan to finance initiatives using solar energy and pre-paid meters...

Nigeria seeks $50 million World Bank loan to boost solar energy and prepaid meters, aiming to enhance power distribution, promote market reforms, and drive economic growth and development.

The federal government has applied to the World Bank for funding of $50 million in order to assist state governments in installing pilot solar plants and upgrading infrastructure.

Wale Edun, the Coordinating Minister of the Economy and Minister of Finance, discussed the initiative with a World Bank delegation on Monday, July 15, in Abuja.

The Special Advisor to the President on Energy, Olu Verheijen, joined the World Bank team, which was headed by Dr. Ndiamé Diop, the country director for Nigeria.

The meeting's goal, according to a statement from Mohammed Manga, the Finance Ministry's director of information and public relations, was to investigate creative ways to advance Nigeria's power industry.

The Power Sector Recovery Operation and the Distribution Sector Recovery Programme, two World Bank-backed projects that aim to enhance power distribution and management systems to promote economic growth and development, were discussed.

The program's goal, according to Edun, is to install 3.5 million prepaid meters in order to improve electricity distribution and promote market reforms, price frameworks, and co-financing for the Transmission Company of Nigeria's Performance Improvement Plan.

The statement read, “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 investments as a major priority area for achieving the desired objective.

“The initiative will strengthen plans to roll out 3.5 million prepaid metres to enhance power distribution.

“$50 million funding for state solar plant pilots and infrastructure upgrades, with 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.”

Edun restated President Bola Tinubu's administration's pledge to realign the country's economy.

According to the statement, representatives from both parties pledged to cooperate in order to accomplish these objectives for the good of all Nigerians.

Developing nations can apply for loans and grants from the World Bank, a prominent international financial organization committed to ending global poverty, for a range of initiatives, such as infrastructure development, healthcare, education, and environmental sustainability.

Nigeria, which borrowed $2.7 billion in 2023, up from roughly $2.9 billion in 2022, has been a top beneficiary of new loans from multilateral lenders.