World Bank approves USD 750 million for Nigeria' s Power Sector Recovery Operation

World Bank has approved a 750 million dollar International Development Association (IDA) credit for Nigeria’s Power Sector Recovery Operation (PSRO) to improve electricity supply, according to a news report by Premium Times.

The bank, in a statement in Abuja, said that the target was to also achieve financial and fiscal sustainability and enhance accountability in Nigeria’s power sector.

It explained that about 47 percent of Nigerians did not have access to grid electricity and those who had access, faced regular power cuts.

According to the World Bank, the economic cost of power shortages in Nigeria is estimated at around 28 billion dollars, which is equivalent to two percent of its Gross Domestic Product (GDP).

It stated that getting access to electricity was one of the major constraints for the private sector according to the Ease of Doing Business report.

It added that improving power sector performance, particularly in the non-oil sectors of manufacturing and services, would be central to unlocking economic growth post-COVID-19.

The statement quoted Shubham Chaudhuri, World Bank Country Director for Nigeria, as saying lack of reliable power has stifled economic activity and private investment and job creation.

"This 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 financial resources it can marshal to help protect lives and livelihoods amid the COVID-19 pandemic, "he said.