Nigeria is closer to completing a power plant expected to boost the country’s power generation by almost 10 percent, after signing a financing agreement with the World Bank.
The Washington-based financial institution partially guaranteed $237 million of debt that is being used for the construction of the Azura electricity plant in Benin City in the South Southern Nigeria.
This was disclosed by Nigerian Bulk Electricity Trading (NBET) Plc, a company that buys power from generation companies and sells it to distributors.
In a statement by NBET, facility will provide 450 megawatts of electricity when it starts in 2018.
Power generation in the country is currently at 4,700 megawatts, the power ministry said in August.
The agreement “represents a major milestone in the evolution of the Nigerian electricity market and provides an exemplary illustration of the commitment shown by the Buhari administration to accelerating investment in the country’s power sector,” NBET said.
Investors and banks including JPMorgan Chase & Co., Standard Chartered Plc and Standard Bank Group Ltd, are lending more than $900 million to the Azura project, according to NBET.