$155m loan to improve power systems, AfDB explains

The African Development Bank (AfDB) says the approved 155 million dollar loan for Economic and Power Sector Reform Programme (EPSERP) is for improving power systems.

Mrs Fatimah Alkali, the Senior Communications Officer, AfDB Nigeria Country Office, said this in a statement on Friday in Abuja.

She said that following the report in the media, AfDB reacted that on the Sept. 19, 2016, AfDB received a request from the Federal Government of Nigeria for the release of one of its staff members to serve as interim chief executive for 12 months.

Alkali said that the bank approved this request to support the Nigerian government in its power sector reforms.

She said that a staff member was granted a special leave without pay for 12 months.

“AfDB is committed in assisting Nigeria achieve the objectives of its reforms in the power sector in accordance with the priorities already approved by the authorities.

“It is to be noted here, that the appointment of the Transmission Company of Nigeria (TCN) management is a prerogative of the national authorities.

“The approved 155 million dollar loan for the Economic and Power Sector Reform Programme (EPSERP) which became effective on Oct. 19, 2012.

“The amount was fully disbursed in two tranches on March 1, 2013, and Dec. 21, 2015, respectively.

“The support was aimed at improving power systems and the business environment.

“And the loan is meant in sustaining growth through sound macroeconomic policies and budget priorities,” Alkali said.

She said that the programme would benefit the entire population of Nigeria in terms of extended access to a more reliable supply of electricity at improved quality and reduced cost.

According to her, the EPSERP would have a major positive impact on the private sector through the substantial reduction in the cost of doing business for all economic sectors.

“Particularly in the formal and informal manufacturing and service activities which are seriously constrained by the power supply gaps,” she added.