The World Bank has approved a $750 million loan to the Federal government which is to be used to improve electricity in Nigeria.
In a statement which was released today on Wednesday, June 24, the World Bank said the loan is for the electricity sector recovery operation (PSRO) to achieve financial sustainability and enhance accountability within the sector. According to the bank, the PSRO will make sure that 4,500 MWh/hour of electricity is supplied to the distribution grid by 2022.
Shubham Chaudhuri, World Bank country director for Nigeria, stated an improved supply of electricity will lift at the least a 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 no longer have get right of entry to to grid power and those who do have access, face regular energy cuts.