The World Bank has approved a $750 million loan through the International Development Association (IDA) to improve the reliability of electricity supply in Nigeria.
According to a statement released on Tuesday, the loan is for the power sector recovery operation (PSRO) to achieve financial sustainability and enhance accountability in the sector.
World Bank also revealed that about 47% of Nigerians do not have access to grid electricity and those who do have access, face regular power cuts.
The power sector recovery programme (PSRP) will ensure that 4,500 MWh/hour of electricity is supplied to the distribution grid by 2022.
It also estimated that the economic cost of power shortages in Nigeria is $28 billion, equivalent to 2% of the country’s gross domestic product (GDP).
World Bank country director for Nigeria, Shubham Chaudhuri, who confirmed the news said adequate electricity supply is capable of lifting 100 million Nigerians out of poverty.
In his word;
“The lack of reliable power has stifled economic activity and private investment and job creation, which is ultimately what is needed to lift 100 million Nigerians out of poverty.
“The objective of this operation is to help turn around the power sector and set it on a fiscally sustainable path.
This is particularly urgent at a time when the government needs all the fiscal resources it can marshal to help protect lives and livelihoods amidst the COVID-19 pandemic.”