The World Bank has approved $750 million credit support for Nigeria’s power sector, saying that the country loses about $28 billion annually to power shortages.
Meanwhile, the Senate Investigation Committee on Power has reported that only two of the six power generation companies, GENCOs in Nigeria are meeting targets. The two are Transcorp Power and Geregu Power.
In a statement announcing the support, the World Bank said the loan, titled, “Power Sector Recovery Operation (PSRO) of $750 million,” is to improve the reliability of electricity supply, achieve financial and fiscal sustainability, and enhance accountability in Nigeria’s power sector.
However, the Bank stated: “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 two percent of its Gross Domestic Product.
“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.”
According to Shubham Chaudhuri, World Bank Country Director for Nigeria, “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
