Nigeria’s electricity transmission is set to improve, following World Bank’s approval of $486 million dollars credit for the rehabilitation and upgrading of electricity transmission substations and lines in the country.
Under the umbrella of the Nigeria Electricity Transmission Project, the World Bank investment aims at increasing power transfer capacity which in turn enables distribution companies to supply consumers with additional power. In December, as part of its support to boosting access to electricity, the World bank pledged a $350 million out of which $150 million would be channeled to mini-grids.
In Nigeria, electricity production over the last 40 years has varied from gas-fired, oil fired, hydroelectric power stations to coal-fired stations, with gas fired systems taking precedence.
Power supply in the West African country has been epileptic. Last year, Nigeria was ranked as the second worst nation in power supply with its 3,851 megawatts power surge. Over 80 million persons lack access to sustainable electricity and each year, over N40 billion annually is spent on inefficient power generation through various of power generating set.
Hopefully, with the newly approved $486 million, under the umbrella of Nigeria Electricity Transmission Project, power transmission would increase, thereby increasing output of power from distribution companies.
The project also aims at supporting private sector participation, capacity development and better governance in Transmission Company of Nigeria and sector institutions.
According to Fashola, “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”.