Nigeria would need to enforce corporate governance from power sector operators, make a definite policy statement on tariff, see to market discipline and develop a coherent strategy to resolve militancy, to secure the $1 billion funding it seeks for the power sector from the World Bank.
These conditions, among others, form the basis of the action plan developed by the Federal Ministry of Power, Works and Housing (FMoPWH) in the Power Sector Recovery Implementation Programme (PSRIP) recently approved by the Federal Government, seen by BusinessDay.
In an earlier report, BusinessDay stated that the Federal Government plans to raise $7.6 billion through the sale of NIPPs ($2.1 billion), World Bank ($1 billion) and AfDB ($1 billion) loans. The Federal Government would also make budgetary allocations for $3.5 billion within five years, to pay its share in the cost required to fix power.
The World Bank Group says the boards of the Nigerian Bulk Electricity Trader (NBET), Transmission Commission of Nigeria (TCN), Nigeria Electricity Liability Management Company (NELMCO), Niger Delta Power Holding Company Limited (NDPHC), Rural Electrification Agency (REA) and Bureau of Public Enterprises (BPE) must be appointed. They also demand the appointment of BPE professional directors on electricity distribution companies (DisCo) boards.
ISAAC ANYAOGU
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