$155m has been approved by Africa Development Bank, AfDB for Economic and Power Sector Reform Programme in Nigeria.
AKINWUMI ADESINA (AfDB President)
The Africa Development Bank, AfDB says it has approved a loan of $155m for Economic and Power Sector Reform Programme in Nigeria.
The Senior Communications Officer of AfDB, Fatimah Alkali, in Abuja on Friday said that the loan became effective in October, 19, 2012.
Recent media reports had indicated that there might be a face-off between the Senate and the Federal Government on plans to secure a facility of 174 million dollars from AfDB.
The media reports also revealed that part of the security for the loan was the handing over the management of Transmission of Company of Nigeria to AfDB.
The reports hinted that AfDB would second three of its staff to take over the management of TCN for six months and would terminate the appointment of current management of TCN.
To this end, the AfDB, in its statement, said that the appointment of the management TCN was a prerogative of the Nigerian authorities and not that of AfDB
It stated that the loan was aimed at improving power systems, business environment and sustaining growth through sound macroeconomic policies and budget priorities.
AfDB said the amount was fully disbursed in two tranches on March 1, 2013 and December 21, 2015, respectively.
According to the statement, the programme was designed to benefit the entire population of Nigeria in terms of extended access to more reliable supply of electricity at reduced rate.
It said, “The EPSERP will have a major positive impact on the private sector through the substantial reduction in the cost of doing business for all economic sectors, particularly in the formal and informal manufacturing and service activities which are seriously constrained by the power supply gaps.“
AfDB also said that the bank had also released one of its staff to support the government in its power sector reforms programme for 12 months on September 19, 2016
It said it was committed to assisting Nigeria to achieve the objectives of its reforms in the power sector in accordance with the priorities already approved by the authorities.