The World Bank on Friday approved an International Development Association (IDA) Credit of 486 million dollars for the rehabilitation and upgrading of electricity transmission substations and lines.
Ms Olufunke Olofon, Senior Communications Officer, World Bank, Nigeria, in a statement said that the investments would increase the power transfer capacity of the transmission network.
The World Bank's International Development Association (IDA), helps the world's poorest countries by providing grant, low to zero-interest loans for projects that boost economic growth and reduce poverty.
The World Bank Country Director for Nigeria, Mr Rachid Benmessaoud, said the Nigeria Electricity Transmission Project (NETP) would help address key bottlenecks in the transmission network.
"It will also improve access to affordable and reliable electricity service to citizens. The credit will also enable distribution companies supply consumers with additional power.
"Together with other investments and policy measures, the project will contribute to ensuring adequate and reliable electricity supply that is necessary for Nigeria's continued economic development," he said.
The Minister for Power, Works and Housing, Mr Babatunde Fashola, reiterated the government's commitment to improving power supply in the country.
"The Federal Government is committed to addressing the challenges in the public-owned transmission network.
"The financing being provided by the World Bank under the Nigeria Electricity Transmission Project power sector underlines this commitment.
"The Federal Government anticipates that private sector financing in the privately-owned segments of the value-chain will complement the government's efforts in bringing better quality service to citizens," he said.
It is a comprehensive package of policy, legal, regulatory, operational and financial interventions that will restore the financial viability of the power sector.The NETP is part of the Power Sector Recovery Programme (PSRP) by the Federal Government.
The measures that will be implemented through 2021 are aimed at improving transparency and service delivery and re-establishing investor confidence in the sector. (NAN)