The World Bank has restructured a $350 million loan to Nigeria to complete seven key power plants in educational institutions. The loan, initially approved in 2018, aims to increase access to electricity for households, public institutions, and small businesses.
Due to delays caused by geotechnical issues, community disturbances, and COVID-19-related disruptions, the World Bank has extended the project’s closing date to December 31, 2024. The revised completion date for all seven plants is expected by the end of the third quarter of 2024.
The Nigeria Electrification Project (NEP) includes developing private sector mini-grids, expanding standalone solar systems for poor and vulnerable households, and providing sustainable power to public universities and associated teaching hospitals. As of June 2024, the project had connected almost 59,000 households and small businesses through mini-grid grants and nearly 1.09 million households and small businesses via standalone solar systems.
However, the completion of the seven power plants has faced delays, with progress ranging from 35% to 80% across different sites. The World Bank has disbursed $265.32 million of the $350 million commitment, leaving an undisbursed balance of $84.68 million.
The restructuring involves additional work to address challenges faced at each site, including geotechnical issues, community disturbances, and COVID-19-related disruptions. The World Bank aims to ensure the delivery of all seven power plants as per the original scope of work.
