The federal government has explained the reason for seeking to borrow $50 million from the World Bank.
The Bola Ahmed Tinubu administration said on Monday during a meeting with the United States Brenton Wood- based world body that the loan would be used for the procurement of solar plant pilots and infrastructure upgrades to support state government drive for stable power supply.
The magazine reported that the administration has been widely criticised for worsening the country’s foreign debt profile which by December 2023 stood at nothing less than $33 billion. The domestic debt as at the last quarter of last year also stood at over $70 billion, according to the Debt Management Office, DMO.
The administration, which came on board in may last year, had promised to be cautious with obtaining loans for finance government projects.
Critics of the government insist that the Tinubu administration has not reaaly lived up to that promise as the nation’s debt problems appear to be getting worse under his watch, having sought the National Assembly’s nod to obtain $7.4 billion. The approval was granted in December by the National Assembly.
Explaining the reason for the $50 million latest loan from the World Bank, Wale Edun, the Minister of Finance and Co-ordinator of the Economy, disclosed during a meeting with the bank’s representatives in Abuja, the nation’s capital that the loan will be used to-supported initiatives, including the Power Sector Recovery Operation and the Distribution Sector Recovery Programme, aimed at improving power distribution and management systems to ensure economic growth and development in the country.
The Bank was led by the Country’s Dr. Ndiamé Diop.
According to a statement by the Ministry’s Director of Information and Public Relations, Mohammed Manga, the funds would be used to procure programme would ensure 3.5 million prepaid metres to enhance power distribution and support tariff frameworks, market reforms and co-financing the Transmission Company of Nigeria’s Performance Improvement Plan.
He explained that the country is collaboration with the Bank with the aims of strengthening Nigeria’s power sector, enhancing energy access to all Nigerians.
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.”
Meanwhile not a few Nigerians insist that more funds have been made available to the federal government after Tinubu ended the fuel and forex subsidies last year. They are asking what the savings from ending subsidies are being used for.
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