An International Development Association World Bank credit for Nigeria’s Power Sector Recovery Operation totaling $750 million has been granted Nigeria to boost its power sector.
In a statement known on Tuesday during a briefing, the World Bank Country Director for Nigeria, Shubham Chaudhuri, said the credit would help to improve the electricity supply in Nigeria.
A lack of reliable power has stifled economic activity and private investment and job creation in Nigeria and getting access to electricity was one of the major constraints for the private sector, according to the Ease of Doing Business report.
Chaudhuri said the objective of the 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 amid the COVID-19 pandemic.
“The PSRO is expected to increase annual electricity supplied to the distribution grid, enhance power sector financial viability while reducing annual tariff shortfalls and protecting the poor from the impact of tariff adjustments.
“This will enable the turnaround of power sector while helping the Federal Government to redirect large fiscal resources from highly regressive tariff shortfall financing towards critical crisis-responsive and pro-poor expenditures. It will also increase public awareness about ongoing power sector reforms and performance.
“Specifically, the PSRO will ensure that 4,500 mwh/hour of electricity is supplied to the distribution grid by 2022 by strengthening the regulatory, policy and financing framework”, he stated.