The Transmission Company of Nigeria (TCN) has in recent times received funding from various donors. Theses international donors are providing about $1.5bn loan to Nigeria for the expansion of power transmission projects across the country. Some of these loans have already been accessed by the Transmission Company of Nigeria, while others are to come subsequently.
TCN recently affirmed that another batch of funds was beginning to come into the power sector as the World Bank recently approved part of the money. Similarly, the African Development Bank and the Islamic Development Bank would provide $200m and $444m respectively for transmission projects, coupled with the partnership with the Japan International Cooperation Agency which is worth $200m which was evident in the commission of a capacitor bank in Apo transmission station in Abuja, few weeks ago.
TCN noted that in February this year, the World Bank approved the release of an International Development Association credit of $486m for the rehabilitation and upgrading of Nigeria’s electricity transmission substations and lines, also TCN stated that other multilateral donors had yet to grant approval for the release of the money but had made commitments to provide the funds.
The Managing Director/Chief Executive Officer, TCN, Usman Mohammed, affirmed it when he told newsmen that due to the confidence which the investors now have in the management of the transmission company, adding that the $1.5bn that was being expected would be used primarily for transmission projects.
He said, “We have $486m from the World Bank, $210m from the Islamic Development Bank, $444m from the Africa Development Bank and $200m from JICA. This is how it is and these are commitments because we are working with them.”
Other arms of the power sector have also benefited from Federal Government’s loans, as well as grants, particularly since the sector was privatized in November 2013. These funding includes; the NBET N701bn assurance guarantee by the CBN, the Nigerian Electricity Management Stabilization Facility disbursed by the CBN.