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$100 b needed to change Nigeria’s energy sector – World Bank

The World Bank says that Nigeria will need about $100 B in the next 10 years to tackle the challenges in its energy sector.

Commenting on the $100 B needed by the country over the next 10 years, World Bank’s regional director for infrastructure, Africa West and East of the global bank, Ashish Khanna, stated that a large chunk of the investment was expected to come from the private sector.

He added that Nigeria has the highest number of people without electricity worldwide, which has led to about a 4 % loss in GDP.

Khanna said the issues of subsidy, gas-to-power as well as energy access would have to be sorted out before any headway can be achieved in the sector.

On a comparative basis, he noted that Ghana already has 85 % electricity access while Senegal was on its way to achieving 100 % access by 2025, stressing that Nigeria has all it takes to move from less than 50 % access to universal energy provision.

“Our estimation is that Nigeria will need at least $100 B in the next 10 years, and it will be very difficult for government or the World Bank to plug that hole. And the private sector will do a lot of funding and will look out for whether the sector is financially viable. But they will ask if I set up a plant, will they pay for it? Is the policy and regulatory environment for the sector certain?” he said.

He further revealed that the World Bank’s engagement in Nigeria is still the largest by the organisation anywhere in the world, adding that the country remains an important development partner.

Aliyu said the Siemens project in Nigeria was on course, stressing that it is meant to take generation to 25,000 MW by 2025. He assured that between September to December, a number of infrastructure will be arriving from abroad.

He disclosed that the national grid remains unstable and wouldn’t take the other sources of planned energy, saying that therefore off-grid electricity was being planned in silos.

The minister further stated that the federal government was planning 14 projects which will give the country 1,000 MW with 10 state governors already collaborating for an additional 100 MW each to hit 2,000 MW off-grid.

 

Source: ESI Africa