The World Bank has approved a loan of $750 million to the Federal Government to boost the weak electricity supply in the country.
The World Bank said the loan is for the Power Sector Recovery Operation (PSRO) to achieve financial sustainability and improve transparency in the sector, according to a statement released June 24 , 2020. The PSRO will ensure 4,500 MWh / hour of electricity will be supplied to the distribution grid by 2022 according to the bank.
Shubham Chaudhuri, the country director of the World Bank for Nigeria, said an increased electricity supply would bring 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 what is ultimately needed to lift 100 million Nigerians out of poverty.
This operation aims to help turn the power sector around and set it on a fiscally sustainable path. This is especially urgent at a time when the government needs all of its fiscal resources to help protect lives and livelihoods in the midst of the COVID-19 pandemic.
According to the World Bank, approximately 47 percent of Nigerians do not have access to grid electricity and those who do have access face regular power reductions.