COVER
World Bank Approves N1trn Loan For Nigeria Power Sector
By Mathew Dadiya, Abuja
The World Bank may have approved a $3billion loan facility ( about N1trn) for revamping of the nation’s power sector, DAILY ASSET learnt at the weekend .
The Bank’s approval followed a request by the Federal government last October, to the international financial institution.
In October at the IMF/World Bank Annual Meeting, Nigeria sought a $3 billion loan to tackle mounting debts in the power sector that risk the collapse of companies running the national grid.
DAILY ASSET learnt at the weekend that the request may have been approved by the World Bank and that the draw down of the Lon will begin in 2020.
The Country Director of the World Bank in Nigeria, Shubham Chaudhuri said in an interview with DAILY ASSET in Abuja at the weekend that “distribution companies are not collecting enough revenue to pay their bills to the power-generation companies, who then can’t pay their bills to the gas companies supplying them.
“The Federal Government has been stepping in to cover the bills for now, because otherwise the power will shut off,” the World Bank Chief said.
Chaudhuri’s statement justified the Federal Government’s request, which is before the World Bank.
The administration of President Muhammadu Buhari since coming to power in 2015 has been working on the perennial problem of power generating and distribution, which has remained a nightmare for the people and the economy in many decades.
President Buhari’s predecessor, Goodluck Jonathan had in 2013, privatised the power sector mainly for generating companies (gencos) and distributing companies (discos) all in an effort to break the jinx of epileptic electricity supply in the country but to no avail.
The Central Bank of Nigeria (CBN) had on several occasions supported the privatised power sector in form of interventions amounting to hundreds of billions of naira without any positive impact as many people and businesses have to rely on generators and diesel to power their homes and businesses.
Perturbed by this development, President Bunari is seeking a combination of reforms and financing to improve the power sector and make the economy viable, hence the request for the World Bank facility.
DAILY ASSET recalled that the Gencos had threatened to down-tool due to feud with the Discos over non-payment of electricity supplies.
The epileptic power supply in the country does not spare any person or office as even the office of the President of the country has to rely on generating set for power supply on daily basis.
According to the 2019 budget, the State House will spend N46 million fueling generators this year.
In the 2019 budget, there are 1,358 generator-related expenses also.
The shortage of power is one of the biggest issues Buhari faces as he tries to reform a $400 billion economy that is too dependent on oil exports, has too many inefficient state-owned enterprises and is still struggling to recover from a recession in 2016.
International Monetary Fund (IMF) in its latest economic report on Nigeria, noted, ”Lack of access to electricity and unreliable electricity supply are key constraints to doing business in Nigeria.”
It estimated the annual economic loss at about $29 billion. In a 2014 World Bank survey, 27% of Nigerian firms identified electricity as the main obstacle to doing business.
The World Bank is also encouraging Nigeria to improve its business environment to create the space for businesses to thrive, create jobs, and address the country’s poverty. Nigeria has climbed 15 places to 131 in the latest ease-of-doing-business rankings.
Using the two biggest cities in the country, Lagos and Kano, substantial improvements were found in the speed of registration of companies, streamlining of payments, quick issuance of construction and electricity-connection permits for new businesses.
“It’s a combination of action at the federal and the state levels.
“It’s a conversation between the federal, state governments, the private sector and international partners.”
Households with access to on-grid electricity had an average power supply of only 9.2 hours a day in the first half of 2019, according to a survey by the country’s leading polling agency, NOI Polls. Electricity production per capita is less than 15% of the average of emerging-market economies and less than 25% of the sub-Saharan Africa average, according to the IMF.
South Africa has three times Nigeria’s power capacity.
To keep out the darkness, households own and operate an estimated 22 million small gasoline generators, whose combined generating capacity is eight times higher than on-grid supply, according to a June 2019 presentation by Dalberg, a global policy and advisory firm. Businesses and individuals spend about $12 billion a year, twice the country’s annual infrastructure budget, fueling these generators.
Nigeria, with 200 million people, struggles to meet its electricity needs even after state-owned power assets were sold to private investors in 2013 in a bid to boost supply.
Electricity production per capita is less than 15% of the average of emerging-market economies and less than 25% of the sub-Saharan Africa average, according to the International Monetary Fund.
Almost everyone in Nigeria depends on generators for regular electricity supply, adding drastically to costs for businesses.
South Africa has three times Nigeria’s power capacity even with Eskom’s troubles.
President Muhammadu Buhari’s government has asked for World Bank assistance to turn around its power industry.
Chaudhuri said that some of the solutions may be new policies and regulations, along with additional financing.
“What we’re trying to do is to help the government figure out what combination of reforms and financing will be needed to get the power sector on track.”
By Tony Obiechina, Abuja
The Development Bank of Nigeria Plc (DBN) has launched DAWN: DBN Action for Women in Nigeria, unveiled its Impact Report and presented MSME Data Assets at the seventh edition of Annual Lecture held in Abuja.
DBN, in a statement on Thursday, said while delivering a welcome address, its Managing Director and Chief Executive Officer, Dr Tony Okpanachi, said the central challenge was no longer reforms themselves but ensuring benefits reach businesses at end of the chain.
He asked how to make sure benefits reach traders in Onitsha, fabricator in Aba, farmer in Kebbi and young founder in Yaba, noting that MSMEs accounted for about half of Nigeria’s GDP and more than eight in every ten jobs, adding that when reform works for MSMEs it works for most Nigerians.
He explained that reform becomes prosperity only when entrepreneurs can act on it whether through long tenor loans to buy equipment, banks willing to take risk or skills and records needed to grow.
He said working through Participating Financial Institutions DBN provides longer term funding, partial credit guarantees through subsidiary Impact Credit Guarantee Limited and capacity building including Entrepreneurship Training Programme.
He disclosed that as at December 2025 DBN had disbursed a cumulative N1.4 trillion to MSMEs through 84 Participating Financial Institutions creating about 1.6 million jobs nationwide.
Under the new five year strategy, the Bank aims to reach more than two million MSMEs with deliberate targets for women led businesses, youth led businesses and underserved states.
On DAWN, Okpanachi said finance alone had not enabled enough women-led businesses to scale.
He said initiative brings together financing, guarantees and credit support, technical assistance, outcome linked grants and market linkages delivered through banks, microfinance institutions, fintechs, aggregators, cooperatives and direct channels.
Its priority sectors are agriculture and exports, healthcare, arts and creatives, technology and green business.
He said DAWN is about moving gender focused lending beyond intention and turning access into opportunity.
On the sidelines of the lecture DBN and African Development Bank held a signing ceremony of AfDB DBN 61 million United States dollars Gender Line of Credit development that reinforces Bank commitment to women led enterprises.
Okpanachi urged Participating Financial Institutions to extend lending into sectors and states where access to finance has been limited, policymakers and regulators to measure reform by what changes for business at end of chain and MSMEs to formalise, keep good records and use support now available.
The Vice President as Special Guest of Honour was represented by Dr Fred Iklaga Senior Technical Adviser in the Office of Special Adviser to the President on Economy.
Keynote speakers were Chief Executive Officer of MTN Nigeria, Dr Karl Toriola, and Chairman of Nigeria Sovereign Investment Authority, Dr Segun Ogunsanya.
Fireside chat featured Chief Executive Officer of Sterling Bank Abubakar Suleiman, manufacturing and trade entrepreneur Mrs Omoyemi Chukwurah and by video Kola Masha of Babban Gona.
The Secretary to the Government of Federation, represented by Augusta Warren Bekaredebo, said 2026 tax reforms would bring relief to many small businesses expressing optimism that a lot of businesses will be smiling by next year because they will be exempted from tax.
By Tambaya Julius, Abuja
The Nigeria Labour Congress (NLC) has threatened possible nationwide industrial action following the failure of talks with the Federal Government over workers’ welfare, petrol prices and other outstanding labour demands.
The warning came after a meeting between the government and organised labour at the Ministry of Labour in Abuja on Thursday, October 22, ended without an agreement.
The congress has given the Federal Government until Tuesday, October 27, to make meaningful progress on the issues, warning that its relevant organs would decide the next line of action if the next meeting fails to produce concrete commitments.
The NLC has also directed its affiliates, state councils and civil society allies to begin mobilising members for possible nationwide action.
In a statement issued after the meeting, the NLC Acting General Secretary, Benson Upah, expressed disappointment over what he described as the government delegation’s lack of preparedness for the negotiations.
According to the congress, organised labour presented its demands in good faith but left the meeting without any concrete commitments from the government.
The demands include a reduction in petrol prices to 2024 levels, renegotiation of the national minimum wage, implementation of agreed tax relief measures and resolution of the terms of settlement involving the Joint Health Sector Unions (JOHESU).
The congress also called for the resolution of issues raised by the Joint Public Service Negotiating Council (JPSNC) over peculiar allowances, wage awards and hazard allowances.
The NLC said the government delegation lacked the necessary authority to engage meaningfully on the issues presented by labour representatives.
“The meeting between the Federal Government and organised labour, convened at the Ministry of Labour in Abuja on 22nd October 2026, has ended without resolution,” the statement said.
It added that the Minister of Labour requested that the meeting be adjourned until October 27 to allow the government to prepare adequately for further discussions.
The preparations, according to the statement, would include bringing relevant ministers and heads of departments and agencies to the negotiating table.
The congress said it remained open to dialogue but would not accept continued delays in addressing workers’ concerns.
“We will report back to our organs, and if no meaningful progress is made on Tuesday, the relevant organs of the NLC will decide the next line of action,” it said.
The labour body urged workers and members of the public to remain calm while the negotiations continue, even as it directed its affiliates and allies to prepare for possible industrial action.
“However, we urge all affiliates of NLC and TUC; all state councils and our civil society allies to be alert and start mobilising for a possible action across the nation while we hope that the tenets of our demands are met by the government,” the statement added.
The October 27 meeting is expected to provide another opportunity for both sides to address the outstanding issues and prevent a possible escalation of the dispute.
However, the NLC’s decision to begin mobilisation suggests that tensions could rise if the next round of talks fails to produce meaningful progress.
The Federal Road Safety Corps (FRSC) has barred its personnel from escorting politicians during campaigns for the 2027 general elections.
Zonal Commanding Officer, RS6, ACM Abimbola Owolabi, gave the directive during her maiden visit to the Cross River Command in Calabar on Wednesday.
Owolabi said patrol vehicles and sirens must not be used for political activities or private engagements, including weddings and funeral processions.
She directed officers deployed to campaign venues to focus exclusively on traffic management to prevent congestion and road crashes.
The zonal head warned personnel against leading political convoys or providing escorts for politicians, stressing that official vehicles must not be used for unauthorised purposes.
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