World Bank has approved a $750 million loan
through the International Development Association
(IDA) to improve the reliability of electricity supply in
Nigeria.


In a statement on Tuesday, 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.

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).

Commenting on the credit facility, Shubham Chaudhuri,
World Bank country director for Nigeria, said adequate
electricity supply is capable of lifting 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,” Chaudhuri said.

“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 PSRO provides results-based financing to support
the implementation of the power sector recovery
programme (PSRP).

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.

https://www.thecable.ng/world-bank-approves-750m-credit-improve-electricity-nigeria

Here we go again.