Resolving the Nigeria Gas to Power Challenge: The World Bank/Federal Government Partial Risk Guarantee to the Rescue?

Abstract

This short paper reviews the role the Partial Risk Guarantee (PRG) mechanism may play in providing payment guarantee or what is termed "securitization" in Nigerian energy terms as far as the electric power sector is concerned.It looks at how the World Bank and the Federal Government of Nigeria are working together to improve the electric power sector as no investor is willing to invest risk capital without some form of assurance, that it would get paid for services rendered and even make some profit.