The 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.
The Bank made this known in a statement in Abuja on Wednesday, adding the target was to also achieve financial and fiscal sustainability and enhance accountability in Nigeria’s power sector, NAN reports.
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 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).
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.
The bank also said that PSRO would provide results-based financing to support the implementation of the Government’s Power Sector Recovery Programme (PSRP).
It further explained that the PSRP was a comprehensive program to restore the power sector’s financial viability, improve service delivery, and reduce its fiscal burden.