FG, World Bank Group hold talks on power sector financial sustainability

Federal Government will further develop its Power Sector Recovery Plan in consultation with the World Bank Group, it was gathered at the weekend.
This was a major outcome of talks concluded weekend between Nigeria’s Federal Government and the World Bank Group on the financial sustainability of the power sector.
“We welcome the support of the World Bank Group as part of the government’s effort in restoring the viability of the power sector,” Kemi Adeosun, minister of finance, said.
Top on resolutions at the a two-day high-level consultation meeting between the Federal Government and the bank was also on the need for the government to prioritise actions that would strengthen the sector’s governance.
This include 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,” Riccardo Puliti, World Bank senior director for Energy and Extractive Industries, said.
Nigeria’s 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 Babatunde Fashola, minister for power, works and housing.
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) have committed to bringing 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,” Rachid Benmessaoud, World Bank country director for Nigeria, said.