The federal government’s $750 million loan for Nigeria’s power sector has been approved by the World Bank.
Shubham Chaudhuri, World Bank country director for Nigeria, explained that the loan is for the Power Sector Recovery Operation (PSRO), which is targeted at attaining financial sustainability and accountability in the power sector. Chaudhuri said this in a statement released today.
He also noted that an improved supply of electricity will lift at least 100 million Nigerians out of poverty, as about 47% of Nigerians do not have access to grid electricity.
He said, “The lack of reliable power has stifled economic activity and private investment and job creation, which 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, he asserted
The $750 million loan request is coming, after the federal government announced that electricity consumers will have to pay more for electricity supply, starting from July.
