To tackle Nigerian complaints regarding electricity distribution companies, the federal government has moved swiftly to secure a loan of $ 500 million from the World Bank.
The Bureau of Public Enterprises (BPE) announced the Federal Government’s decision to secure such a whopping amount from the World Bank.
Following the announcement, the BPE elaborated on the reason for the government securing such an amount of loan; they stated that the Federal Government is very much aware of the lapses in the power sector and has been weighing its options on how to solve the issue for some time now, hence the move to secure the loan from the World Bank.
Recall that DisCos recently threatened to disconnect the power supply of many manufacturers in Nigeria over their refusal to comply with the new electricity tariff plan of N255 kilowatts per hour from the former rate of N66 kilowatts per hour. DisCos’s threat is due to the losses that have been incurred over the refusal of manufacturers to pay the new rate.
This is an eye-opener for the federal government, as the hike in electricity tariffs throughout the country has not helped solve the problem of electricity in the country. Citizens lament daily the poor power supply coupled with increased electricity tariffs.
The complaints of the DisCos and the citizens led the Federal Government to secure a whopping loan of $500 million from the World Bank.
The BPE explained that the Federal Government’s securement of the $500 million loan is aimed at solving the issues of the DisCos in the country. This statement was made known by the Head of Public Communication, Amina Othman, in Abuja.
Furthermore, the BPE stated that the loan, which the World Bank Board approved of Directors on February 4, 2021, targeted alleviating the challenges faced by the nation’s electricity sector, citing recent power issues in the country as one reason for procuring such a loan.
