To support and boost the availability of electricity in Nigeria, the Federal Government applies for a $5 billion loan from the World Bank.
Last April in Washington, DC, the World Bank met with the powerful representatives from Nigeria to talk about the nation’s power crisis. However, the result of the meeting was disclosed to the public.
The meeting was attended by Mr. Babatunde Fashola, Minister for Power, Works and Housing; Mrs. Kemi Adeosun who is the Minister of Finance, Senator Enyinnaya Abaribe, the Senate Committee on Power, Steel and Metallurgy’s Chairman and Mr. Dan Asuquo, the Chairman of the House of Representatives Committee on Power.
After the presentation and discussion, the World Bank committed and stated that it would send a complete range of instruments to organize investments for the country’s energy problems. This action is to help the government to secure investments from the private sectors.
In the records of the Debt Management Office, the total external debt of Nigeria amounts to $13.81 billion as of March 31 this year. $6.93 billion was from the World Bank Group. The figures show that the World Bank holds more than half of the country’s external debt.
In the event that the loan being applied by the FG is approved, Nigeria’s total debt to the World Bank would be $11 billion. Back In 2014, the World Bank had released $1.19 billion to cover for the nation’s electricity crisis.
The package of loans were approved by the Board of Executive Directors of three arms and they assured that the World Bank would support various energy projects to power up electricity generation and to lessen up the shortages in the country. The projects were also classified as critical elements if the bank’s energy business plans for the nation.
The World Bank also stated that boosting the electricity resources and supply in Nigeria needs investment and support both from the public and private resources.