The federal government on Wednesday approved N8.64bn for the end-to-end grid modernisation and expansion project of the nation’s power infrastructure.
The move is part of measures towards resolving the electricity problem in Nigeria.
In 2019, the federal government had signed an agreement with German-based company Siemens to distribute 25,000 megawatts of electricity by the year 2023.
The N8.65bn is the Federal Government’s counterpart funding for the project.
The decision followed a joint memo on the subject presented by the Minister of Finance, Mrs. Zainab Ahmed, and the Minister of Power, Mr. Saleh Mamman to the Federal Executive Council seeking the release of the fund on Wednesday.
Briefing State House Correspondents after the 10th virtual FEC meeting chaired by President Buhari at the State House in Abuja, the Minister of Finance said the project will be implemented in three phases.
“The objective of this Presidential Power Initiative is to address the intractable problems that have bedeviled the Nigerian power industry over a period of years,” she said.
According to Ahmed, “the project is designed to include 23 transmission initiatives as well as 175 separate transformative projects in the electricity distribution franchises that we have in the country.”
The 12-year loan has an interest of London Interbank Offered Rate plus 1% to plus 1.2%.
It is also a convertible loan facility to the discos and will be restructured as soon as the first phase of the process is done.
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