World Bank has approved a $750 million loan to the Federal government which is to be used to improve electricity supply in the country.
In a statement released today Wednesday, June 24, the World Bank said the loan is for the power sector recovery operation (PSRO) to achieve financial sustainability and enhance accountability in the sector. According to the bank, the PSRO will ensure that 4,500 MWh/hour of electricity is supplied to the distribution grid by 2022.
Shubham Chaudhuri, World Bank country director for Nigeria, said an improved supply of electricity will lift at least 100 million Nigerians out of poverty.
“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.” the statement read.
According to the World Bank, about 47% of Nigerians do not have access to grid electricity and those who do have access, face regular power cuts.