World Bank committed to financial sustainability plan in Nigeria’s power sector

World Bank committed to financial sustainability plan in Nigeria’s power sector

The World Bank Group on Saturday reaffirmed its commitment to support the implementation of the Government’s power sector Recovery Plan to re-establish financial sustainability in Nigeria power sector.

Rachid Benmessaoud, World Bank Country Director for Nigeria disclosed this in a consultation meeting with the Federal government of Nigeria, stating that the World bank is committed to provide support for the implementation of the Government’s power Sector Recovery Program which was approved by the Federal Executive Council of Nigeria on March.

He said “The World Bank Group is committed to supporting the implementation of the Government’s Power Sector Recovery Program to re-establish financial sustainability in the power sector”.

The meeting resulted in agreement on the next steps in developing the World Bank Group’s support, recognizing the need for concerted efforts to accelerate its preparation which include bringing its experience in developing financing solutions and attracting private sector capital in Nigeria.

According to him, the current status of the power sector characterized by poor service and lack of liquidity is a source of macro-economic imbalances and a binding constraint to the revival of growth for the country. The Power Sector Recovery Program, focuses on supporting implementation of power sector reform, reducing losses in the distribution companies, enhancing the sector’s financial viability, increasing access to electricity services, and mobilizing private
sector investment.

Babatunde Fashola, SAN, Minister for Power, Works and Housing explained that the approval of the recovery program shows the Government is ready to embrace a sustainable development in the Nigeria power sector.

He said “The approval of the Power Sector Recovery Program by the Federal Executive Council demonstrates that the Federal Government is committed to the sustainable development of the power sector. The implementation of the Program is critical to achieving the objectives of the Government’s Economic Growth and Recovery Plan”.

Kemi Adeosun, Minister of Finance stressed on the need for the country to have a well designed program in the sector so as to attract private investors. “There is need for well-designed derisking in order to attract private investors to the sector”.

Dan Asuquo, Chairman, House of Representatives Committee on Power said the committee will contribute their bit to support the effectiveness of the Power sector recovery Plan.

“We will make sure our oversight functions focus on the completion of projects and initiatives that support the effectiveness of the Power Sector Recovery Program” He said.

The World Bank Group congratulated the Government on its commitment to the Recovery Program, stressing the critical importance of the power sector for Nigeria’s development and for restoring macroeconomic resilience and growth.

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