Tinubu Gets Senate Approval To Borrow $500m From World Bank To Buy Electricity Meters
Senator Bola Tinubu, President federal republic of Nigeria , has secured the approval of the Nigerian Senate to borrow $500 million from the World Bank to finance the purchase of electricity meters.
This development comes as part of efforts to improve power distribution and reduce energy theft in Nigeria. The country has been grappling with power supply issues for decades, with an estimated 80 million people lacking access to reliable electricity.
The loan agreement was reached during a meeting between Tinubu and a World Bank delegation led by Shubham Choudhury, the bank’s Country Director for Nigeria. The funds will be disbursed through the Nigeria Electrification Project (NEP), which aims to provide sustainable electricity access to 25 million Nigerians by 2023.
The new meters are expected to be installed under the Meter Asset Provider (MAP) scheme, which allows private companies to own and manage electricity meters on behalf of distribution companies (DISCOs). This approach is intended to reduce the financial burden on DISCOs and accelerate meter installation.
The World Bank has expressed its commitment to supporting Nigeria’s power sector reforms. In a statement, Choudhury said, “We are pleased to support Senator Tinubu’s initiative to improve power distribution in Nigeria through this innovative financing arrangement.” He added that the project would help reduce energy losses and improve customer service.
The approval of this loan marks a significant step forward in Nigeria’s efforts to address its power sector challenges. However, it remains to be seen how effectively the funds will be utilized and whether they will lead to tangible improvements in electricity access for Nigerians.
