In a move to bolster Nigeria’s energy infrastructure, the World Bank has restructured a $350 million loan, extending the completion deadline to December 31, 2024.
This extension is aimed at finalizing the construction of seven key power plants within educational institutions, a critical part of the Nigeria Electrification Project (NEP).
The NEP, which was initially approved on June 27, 2018, seeks to enhance electricity access for households, public institutions, and underserved micro, small, and medium enterprises (MSMEs) across Nigeria.
While significant progress has been made, the completion of these power plants has faced delays due to various unforeseen challenges, including geotechnical issues, community disturbances, and disruptions related to the COVID-19 pandemic.
The revised plan targets the completion of all seven plants by the end of the third quarter of 2024, with the Maiduguri and Calabar sub-projects expected to be completed by September 2024.
The final quarter of the year will be dedicated to site handover and the initiation of a sustainability plan, with EPC contractors providing performance guarantees to cover operational and maintenance responsibilities.
The NEP’s components include the development of private sector mini-grids, the expansion of standalone solar systems for vulnerable households, and the provision of sustainable power to public universities and their associated teaching hospitals.
As of June 2024, the project had successfully connected nearly 59,000 households and MSMEs through mini-grid grants and approximately 1.09 million households and MSMEs via standalone solar systems.
Despite these achievements, the Energizing Education Program Phase II (EEP II), which is a key component of the NEP, has experienced varying levels of progress across different sites, with completion rates ranging from 35 per cent to 80 percent.