Nigeria Secures More Funds For Power Sector Transformation

The African Development Bank (AfDB) has approved a (N29.4billion) $184.2 million loan to drive Nigeria’s power sector privatisation agenda, and a further $3.1 million to propel its vision 2020 power target of 40,000MW.

The AfDB said a thriving power sector was critical to the sustainability of Nigeria’s development path.

“The Board of Directors of the AfDB group approved an African Development Fund (ADF) Partial Risk Guarantee (PRG) programme of 184.2 million dollars and an ADF loan of 3.1 million dollars for capacity building,” AfDB said in a statement released by News Agency of Nigeria.

According to the bank, the PRG arrangement aims to boost the country’s power generation by driving commercial financing and private sector investment in the sector.

AfDB explained that while the programme would lessen the risk of investing in the Nigerian power sector, it would increase the comfort level of private sector financiers and commercial lenders investing in the privatization programme.”