The World Bank has approved $750 million (about N290.6 billion) to tackle the liquidity crisis in Nigeria’s power sector.
The fund, coming as an International Development Association (IDA) credit for the nation’s Power Sector Recovery Operation (PSRO), is to boost financial sustainability and enhance accountability in the sector.
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 – equivalent to 2% of its Gross Domestic Product (GDP).
Getting access to electricity ranks as one of the major constraints for the private sector according to the 2020 Doing Business report.
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.