Indications emerged on Monday that the African Development Bank (AfDB) had endorsed an outlay of $200 million (around N61.2 billion) for Nigeria to develop its decrepit power transmission facilities.
According to reports obtained in Abuja on Monday, the money was approved last week by the AfDB management to be utilised under Nigeria’s Transmission Expansion Programme.
Wale Shonibare, Acting Vice President Energy, Power, Climate and Green Growth made the revelation during its team’s visit to the Minister of State for Power, Goddy Jedy-Egba.
“We’ve come to recap the progress we are making with our several investments within the power sector in Nigeria around the Nigeria Electrification Project, working with the Rural Electrification Agency where our board approved $200m.
“And we also have the work we are doing with the transmission company under the NTEP programme where we’ve approved $200m for phase one and there is a phase two. It is a $410m programme,” Mr Shonibare said.
He went further to say “for the NTEP programme, it was signed last week and so the investments will start flowing into the sector very soon.
“Over the coming months, we will be looking to progress into the second phase of the power transmission programme.”
Concerning the REA programme with the bank, Shonibare said “that has already been signed and it is under implementation as we speak. In fact, I am here to flag off the beginning of that programme for the REA.”
He also disclosed that the AfDB had begun discussion with Distribution Companies (Discos) as the bank intends to invest in distribution as well.
“We are also supporting government on the Jigawa Solar Project where we provided $1m to support feasibility studies for phase one and we will be looking at phase two, going forward.
“We are also looking at ways in which we can intervene in the distribution sector. And that work is going on right now, to see what’s the best way of supporting investments in distribution.”
On his part, Jedy-Agba said “the AfDB has offered to invest more in our power sector. They have offered to increase their funding and diversify from REA to other things as well.”