FG Targets U.S.$500 Million Loan for Power
ABUJA: Nigeria has begun plans to secure $500 million in loan from the African Development Bank.
The funding will come in separate tranches of $100 million to the Transmission Company of Nigeria, TCN, to bridge gaps in the power sector.
A product of PHCN breakdown, TCN works to evacuate and distribute power generated.
The ADB loan comes on a precondition for Nigeria to have a monitoring and evaluation committee.
Power Minister, Chinedu Nebo, has previously noted $3.4 billion is needed to help upgrade Nigeria’s transmission network to standards where it can evacuate the expected generation capacity coming on stream.
In comments presented by the ministry’s permanent secretary Godknows Igali, Nebo said, “if we have appropriate funding in the next one year we will be able to double our transmission capacity.
“The technical committee is critical as it is required by AfDB to access the loan.”
The committee, inaugurated at the power ministry’s Abuja headquarters, consists representatives from the Federal Ministry of Finance, Ministry of Power, Bureau of Public Enterprise (BPE) and TCN.
Haruna Mohammed, head of the committee and Finance Ministry’s director for international economic relations department, said all projects would be properly tracked and assessed to ensure successful execution.
“We need to leverage on the execution of these initial projects to be able to access other available funding moving forward,” Mohammed said.