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Power Sector: Expert Tasks FG On W/Bank’s $486m

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An economist and group managing director of TL First Group, Dr. Olu Olasode has urged  the federal government to make judicious use of the $486million World Bank fund granted to the country.

According to Olasode, the loan which was approved for the rehabilitation and upgrade of the Nigeria’s electricity transmission substations and lines, is a welcome investment that would alleviate the current challenges militating against the nation’s power sector.

Responding to questions on implications on rising debt, Dr Olasode, who is also a Chartered accountant, stated that: “Unlike many professional colleagues who are weary of debts, I have no problems with increasing your labilities if the resulting growth in income, capital, assets or national wealth far outweighs the debt. In essence, it should be about spending to save through better infrastructure in electricity transmission that ultimately powers economic growth.”

According to Olasode, effective utilisation of the fund can benefit small scale business owners and contribute to adequate and reliable electricity supply necessary for Nigeria’s continued economic development as an effort to ease the infrastructure constraints these businesses currently face.  Electricity is a significant component of virtually any production process. As such, limited supply has the potential to, directly or indirectly, affect the economic productivity of businesses. An attendant effect is the closure of many Enterprises in Nigeria in the last five years.

He stated that the Transmission Company of Nigeria can be better empowered to ensure increased transmission network and provision of additional electricity. He further proposed that part of the funds can be used to adopt new models that tap into the vitality of the nation’s potentials. “For instance, investment can be made into solar-powered light centres that help to increase social activity and productivity of communities by generating light after sundown.



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