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World Bank Assists in Improving Nigeria’s Power and Gas Sectors

The Board of the World Bank today approved US$600 million of assistance to the Power and Gas sectors in Nigeria, comprising US$200 million in IDA Credits to assist in network investments and technical assistance to improve electricity supply and a further US$400 million in Partial Risk Guarantees (PRGs) in support of domestic gas market development.
Poor infrastructure in the power sector is a key constraint to growth in Nigeria. The project will help the Federal Government’s current program to improve electrical power to Nigerians, a priority in the Government’s 7-point agenda for economic development

The Nigeria Electricity and Gas Improvement Project (NEGIP) will provide for Partial Risk Guarantees (PRGs) in support of Gas Supply Agreements that will assure and increase gas supply to boost power generation which is critical for economic growth of the country. In this way the Project will address one of the critical bottlenecks in the supply chain for power generation and underpin the Government’s reform efforts in the gas and power sectors.

The project will rehabilitate existing transmission and distribution infrastructure to supply the increased power generated from the improved gas supply to consumers. Benefits to be derived from the project include reliable and improved quality of gas supply by instilling commercial discipline in the gas sector through commercial contracts; reduction of power losses from the electrical grid and improved power quality and reliability. The project involved extensive consultations with government and Civil Society Organizations (CSO) in Nigeria.


Additional information: World Bank project database
News date: 16/06/2009

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Comments and remarks to Wim Jonker Klunne

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