The World Bank has approved $750 million in International Development Association (IDA) credit for Nigeria’s Power Sector Recovery Operation (PSRO).
The bank’s Board of Directors gave the approval “to improve the reliability of electricity supply, achieve financial and fiscal sustainability, and enhance accountability in the power sector in Nigeria.”
According to the bank, “about 47 per cent of Nigerians do not have access to grid electricity and those who have access, face regular power cuts.”
In addition, the Bretton Woods institution noted that “the economic cost of power shortages in Nigeria is estimated at around $28 billion – equivalent to two per cent of its Gross Domestic Product (GDP).”
The bank lamented that “getting access to electricity ranks as one of the major constraints for the private sector according to the 2020 Ease of Doing Business report.”
Improving power sector performance, particularly in the non-oil sectors of manufacturing and services, the bank said “will be central to unlocking economic growth in post COVID-19 era.”
Shubham Chaudhuri, World Bank Country Director for Nigeria, noted that “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.”