ADB, IDB, EU Others lend Nigeria $1.55 billion for power sector

The Transmission Company of Nigeria has received  a $1.55 billion loan from a consortium of lenders including the World Bank, African Development Bank (ADB), Islamic Development Bank , European Union and Japanese Agency for International Cooperation (JAICA). The loan will be used to fund some critical projects and expand the national grid. The TCN is also targeting a transmission capacity of 20,000 KW in the next 5 years

Where is the money going to ?

The loan will be used to finance the Abuja transmission project which comprises three sub stations and a transmission line from Abuja to Lafia, in addition to other power projects across the country.

Why the loan?

Several industry experts have complained that the nation’s current transmission network is unable to carry the maximum volume of electricity being generated in the country, often leading to network collapse. Stranded generation is currently put at 2000Kw.   Expanding the grid, means more power will be supplied to consumers and businesses. The transmission grid is owned by the Federal Government, which is constrained by budgetary issues. The government had few years ago, privatized distribution and generation of power in the country.

The lenders

The World Bank was founded in 1944, and is an international body that provides loans across the world for capital projects. JAICA was founded in 2003 and is a government agency that coordinates official development assistance for the government of Japan. The African Development Bank (ADB) was founded in 1964 and is a multilateral development finance institution. Islamic Development Bank was founded in Jeddah in 1973 and is owned by the Organization of Islamic Nations (OIC). The European Union is an economic and political union comprising of 28 member states mostly in Europe.