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Zenith Bank signs agreement that could ease Nigeria’s electricity challenges

BellaNaija.com

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BILATERIAL AGREEMENT 1BOn Saturday, May 14, 2016, Zenith Bank Plc signed a very significant power sector credit facility agreement with the French Development Agency – Agence Francaise de Development (AFD) that could have very positive implications for Nigeria’s electricity challenges.

The on-lending term loan being made available to Zenith Bank is to support new investments in the CAPEX (capital expenditure) of Distribution Companies (DISCOs) in the power sector in Nigeria at single digit interest rates.

Zenith BilateralChairman of Zenith Bank Jim Ovia and Laurence Breton-Moyet, Chief Operating Officer and Member of the Executive Board from the AFD Headquarters, Paris signed the agreement with President Muhammadu Buhari and President Francois Hollande in attendance.

With the potential to give over $100 million in loans to the DISCOs, this could very well be a turning point in Nigeria’s struggle for uninterrupted power supply.

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8 Comments

  1. Jenny

    May 16, 2016 at 8:49 am

    The article says *could* Even things that we have been assured of never some to completion how much more when there is a probability *could*
    Sorry, we Nigerians are gradually losing hope in the whole system here its pathetic! 🙁

  2. keke driver

    May 16, 2016 at 8:53 am

    Amen o

  3. tosin

    May 16, 2016 at 9:19 am

    Giving out money is not the problem but how to spend in right way or for the purposes

  4. Ephi

    May 16, 2016 at 9:43 am

    The power sector needs massive investment so defintely a step in the right direction.
    My question about this kind of agreement is what benefit is it to the “giving country”? I want to believe France won’t dash out money for free, unless it is aid money. Well, let’s watch and see.

  5. Tosin

    May 16, 2016 at 11:03 am

    Meanwhile, secure yah inverta.

  6. Jamce

    May 16, 2016 at 3:33 pm

    How can we be showcasing this fraud in the power sector. At the time of bidding for the various distribution companies, the DISCOs stated in their proposals their sources of funding. Suddenly, both they are the government agreed that they cannot fund their operations. So, they resorted to imposition of “Meter Maintenance Tax” of N750 per month. Just calculate what that comes to before the increased tariffs and estimated bills for power that is never supplied. Who is fooling who?

  7. Prince

    May 16, 2016 at 5:34 pm

    we dey wait.

  8. Tunmi

    May 16, 2016 at 10:16 pm

    So why wasn’t this signed early on or with Nigerian companies?

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