The World Bank Group has declared its support for the Nigerian Power Sector Recovery Program.
The Group and the Federal Government of Nigeria today had a high level consultation meeting to discuss World Bank Group support for the Government’s Power Sector Recovery Program, which was approved by the Federal Executive Council of Nigeria on March 22, 2017.
The current status of the power sector characterized by poor service and lack of liquidity is a source of macro-economic imbalances and a binding constraint to the revival of growth for the country.
The Power Sector Recovery Program focuses on supporting implementation of power sector reform, reducing losses in the distribution companies, enhancing the sector’s financial viability, increasing access to electricity services, and mobilizing private sector investment.
“The approval of the Power Sector Recovery Program by the Federal Executive Council demonstrates that the Federal Government is committed to the sustainable development of the power sector.
The implementation of the Program is critical to achieving the objectives of the Government’s Economic Growth and Recovery Plan,” said Minister for Power, Works and Housing, Babatunde Fashola, .
“There is need for well-designed derisking in order to attract private investors to the sector,” said Mrs. Kemi Adeosun, Minister of Finance. “All the agencies of Government will work in concert to ensure implementation of the Power Sector Recovery Program.”
“The legislative arm of the Nigerian government is fully committed to the successful implementation of the Power Sector Recovery Program,” said Senator Enyinnaya Abaribe, Chairman, Senate Committee on Power, Steel and Metallurgy.
“We will make sure our oversight functions focus on the completion of projects and initiatives that support the effectiveness of the Power Sector Recovery Program” said Honourable Dan Asuquo, Chairman, House of Representatives Committee on Power.
The World Bank Group congratulated the Government on its commitment to the Recovery Program, stressing the critical importance of the power sector for Nigeria’s development and for restoring macroeconomic resilience and growth. The meeting discussed the action plan set out in the Program, stressing the need for strong interagency coordination to ensure that it attains its aims.
“Controlling the cost of electricity supply is a critical element of the Recovery Program that will require close attention to prioritizing investments based on least cost power development investment planning principles,” said Riccardo Puliti, World Bank Senior Director for Energy and Extractive Industries.
“A turnaround of the power sector will require the expertise and financing of the private sector,” said Bernard Sheahan, Global Director for Infrastructure and Natural Resources at the International Finance Corporation. “This would require continuous improvement in the investment climate in Nigeria and strong communications among stakeholders of the sector reform plan during its implementation.”
“A full range of instruments will be deployed to help the Government mobilize investments directly from the private sector and through private sector guarantees,” said Sarvesh Suri, Director of Operations at the Multilateral Investment Guarantee Agency.
The World Bank Group reaffirmed its strong partnership with the Government of Nigeria in addressing the challenges in power sector, that include bringing its experience in developing financing solutions and attracting private sector capital in Nigeria.
The meeting resulted in agreement on the next steps in developing the World Bank Group’s support, recognizing the need for concerted efforts to accelerate its preparation.
“The World Bank Group is committed to supporting the implementation of the Government’s Power Sector Recovery Program to re-establish financial sustainability in the power sector,” said Rachid Benmessaoud, World Bank Country Director for Nigeria.