ABUJA — The World Bank has approved $750 million loans to Nigeria’s power sector after years of negotiations over long term reforms in the sector.
The loan which was approved by the Board of Directors of the Bretton Eood Institution, was for Power Sector Recovery Operation (PSRO) to improve the reliability of electricity supply, achieve financial and fiscal sustainability, and enhance accountability in the power sector in Nigeria.
About 47% of Nigerians do not have access to grid electricity, and those who do have access, face regular power cuts. In addition, the economic cost of power shortages in Nigeria is estimated at around $28 billion which is equivalent to 2% of the country’s Gross Domestic Product (GDP).
According to the ease of doing business report 2020, lack of power has been one of the major challenges facing the private sector. Hence, improving power sector performance, particularly in the non-oil sectors of manufacturing and services, will be central to unlocking economic growth post-COVID-19.