The World Bank Group and the Federal Government of Nigeria today concluded a two-day high-level consultation meeting on financial sustainability of the power sector.
The Federal Government and the World Bank Group share a common view that the basic structure of the power industry is sound and that a viable power sector is a necessary precondition for sustainable economic growth and development. They agreed on causes and dimension of the challenges and on the urgent need for restoring the sector’s financial sustainability to attract significant private investments. The transition from a public to a private sector-led model has been in implementation for three years and may take time to fully mature.
“The Federal Government is committed to addressing the challenges in the power sector as part of efforts towards achieving economic recovery,” said H.E. Babatunde Fashola, SAN, Minister for Power, Works and Housing.
The Federal Government and the World Bank Group agreed on the need for the Government to prioritize actions that will strengthen the sector’s governance including the appointment of Commissioners in the Nigerian Energy Regulatory Commission, restore investors’ confidence, attract public and private investment in generation, transmission and distribution for enhanced service quality, protect sector revenues through improved metering and collection and build capacity. Financial support of the Government will be required during the transition to an efficient, safe, affordable and cost reflective electricity system.
“This was a constructive meeting where the Federal Government and the World Bank Group have exchanged views on possible options to stabilise the power sector and committed to work together on implementation of priority actions,” said Riccardo Puliti, World Bank Senior Director for Energy and Extractive Industries.
The Federal Government will further develop its Power Sector Recovery Plan in consultation with the World Bank Group.
“We welcome the support of the World Bank Group as part of the Government’s effort in restoring the viability of the power sector,” said Mrs. Kemi Adeosun, Minister of Finance.
As a committed partner in Nigeria’s power sector, the World Bank Group, including the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA) will bring their experience in developing financing solutions and attracting private sector capital in Nigeria.
“The discussions held with the Federal Government of Nigeria have been substantive and we will support the implementation of the Government’s Power Sector Recovery Plan to re-establish financial sustainability in the power sector,” said Rachid Benmessaoud, World Bank Country Director for Nigeria.