Abuja - The World Bank, the International Finance Corporation (IFC) and the
Multilateral Investment Guarantee Agency (MIGA), had approved $1.18 billion
about N191billion to support Nigeria in boosting its power generation.
This is contained in a statement by Bamidele Oladokun, Communication
Associate to the World Bank, in Abuja on Wednesday.
It stated that the donors approved the loans and guarantees to support a
series of energy projects that would help boost independent power generation
and reduce energy shortages in Nigeria.
“The World Bank approved up to US$245 million for the 459-megawatt Azura Edo
power plant, near Benin City, Edo; and US$150 million for the 533-mw Qua Iboe
plant in Ibeno, Akwa Ibom.
“Both plants are gas-fired. The Boards of IFC and MIGA also approved loans
and hedging instruments of up to US$135 million and guarantees of up to US$659
million for the Azura Edo project,’’ it stated.
It added that unlocking the flow of Nigeria’s extensive natural gas reserves
would expand power supply and energy exports to neighbouring countries in the
West Africa Power Pool.
The statement said that supporting private sector-financed independent power
producers (IPPs) formed a critical part of the Nigerian government’s Power
Sector Reform Roadmap.
It quoted the Vice President, Africa Region World Bank, Makhtar Diop, as
saying efficient, affordable and reliable access to electricity is essential
for small and medium-sized enterprises in Nigeria to accelerate job creation.
"I am glad that we were able to support Nigeria’s extensive energy reform
Diop said the IBRD guarantees, included forward-looking mitigation and
risk-sharing arrangements, designed to augment the country’s power sector
reforms while building market confidence and setting industry benchmarks.
The statement also quoted the IFC Regional Vice President, Jean Philippe, as
saying ``for energy issues to be addressed in Nigeria both the public and
private sectors needed to invest in it.
“The World Bank’s group could help catalyse significant private investment
in an environment that best assures successful delivery of increased power
supply,” he said.
The Vice President and Chief Operating Officer of MIGA, Michel Wormser, was
also quoted as saying, "the Azura Edo IPP was expected to have a strong
"It will also set a precedent for future private sector investors in the
For the latest on national news, politics, sport, entertainment and more follow us on Twitter and like our Facebook page.