In a significant move aimed at bolstering the electricity sector, the Senate has given its approval for a $500 million loan requested by President Bola Tinubu.
The loan is designated for the Bureau of Public Enterprises (BPE) to implement an electricity metering program.
This initiative falls under the World Bank funded Nigeria Distribution Sector Recovery Program (DISREP), with the objective of enhancing the financial and technical performance of electricity distribution companies (DisCos).
Presenting the report, on Wednesday, Vice Chairman of the Senate Committee on Local and Foreign Debts, Senator Haruna Manu, emphasized the importance of the loan, stating, “The Senate do approve the sum of $500,000,000 (Five Hundred Million United States Dollars) in the ongoing negotiation of external borrowing for the Bureau of Public Enterprise, BPE.”
The $500 million loan constitutes a portion of the $7.94 billion loan initially sought by President Tinubu in November 2023 under the 2022-2024 external borrowing plan. The approval was granted during a special plenary session held on December 30, following thorough deliberations by the Senate Committee.
Manu underscored that the terms and conditions of the loan would not compromise Nigeria’s economic growth or sovereignty. He reaffirmed the Senate’s commitment to adhering to the Debt Management Office (Establishment) Act 2003 and the Fiscal Responsibility Act 2007, which mandate presidential approval and National Assembly resolution for external borrowing requests.
This approval signifies a step forward in addressing the challenges within Nigeria’s electricity distribution sector and reflects the government’s dedication to improving access to reliable electricity nationwide.
