Moody’s has lauded the initiative by the Nigerian Government to obtain a $3bn loan from the World Bank to improve the failing electricity of the country.

Christopher Bredholt, Vice President and infrastructure analyst at Moody’s, in a statement sent to SaharaReporters described the loan as a means of improving the access to electricity of many Nigerians.

He said, “The World Bank providing a $3bn loan to upgrade and expand Nigeria’s electricity transmission and distribution sector will go some way towards improving the chronically poor reliability of electricity to households and firms and increase the population with access to electricity, which stands at only just over 50 per cent. 

“Longer-term challenges for the sector remain, however, including the implementation of cost-reflective tariffs, diversifying into renewable energy supply, increasing the participation of the private sector, and strengthening the governance frameworks of independent regulatory institutions.”

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