By Emmanuel Elebeke

The World Bank, IFC and MIGA Board of Executive Directors have approved a $1.189 billion loan package and guarantees to boost power generation in some selected states of Nigeria.

The loan facility is a series of energy projects that will help boost independent power generation and ease crippling energy shortages in Nigeria.

World Bank partial risk guarantees include up to US$245 million for the 459 megawatt, Mw, Azura Edo power plant near Benin City, Edo State; and up to US$150 million for the 533 Mw Qua Iboe plant in Ibeno, Akwa Ibom State. Both plants are gas fired.

The boards of IFC and MIGA also approved loans and hedging instruments of up to US$135 million and guarantees of up to US$659 million for the Azura Edo project.

The Vice President, Africa Region, World Bank, Makhtar Diop, said: “Efficient, affordable and reliable access to electricity is essential for small and medium sized enterprises in Nigeria to accelerate job creation.

“I am glad that we were able to support Nigeria’s extensive energy reform programme and provide direct assistance to increase generation capacity by mobilising nearly US$1.7 billion of private sector financing through a range of instruments.”

The IFC Regional Vice President, Jean Philippe Prosper, said: “Addressing energy needs in Nigeria requires investment from the public and private sectors. Working across the World Bank Group, we can help catalyze significant private investment in an environment that best assures successful delivery of increased power supply.”