By Tosin Olatokunbo
Nigeria’s power sector has received a boost after the World Bank approved a $750m International Development Association, IDA credit for Nigeria’s Power Sector Recovery Operation.
In a statement on Wednesday, the bank’s Country Director for Nigeria, Shubham Chaudhuri, said the credit would help to improve the electricity supply in Nigeria.
But he expressed worry that close to half of the nation’s over 200 million people still don’t have access to electricity.
The bank expressed worry that about 47 per cent of Nigerians had no access to grid electricity and those who had access faced regular power cuts, adding that the power problem in the country has made Nigeria to lose $28 billion in the last few years.
According to the bank “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. 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 bank stated that the project will increase electricity generation and enhance both the supply and distribution channels.
A major part of this project is to help reduce the burden of increase in tariff on poor Nigerians, according to the bank.
Therefore, the bank expects that“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 4,500MWh/hour of electricity is supplied to the distribution grid by 2022 by strengthening the regulatory, policy and financing framework,” the statement said.
