The World Bank approved $500 million to support the government of Nigeria in improving its electricity distribution sector.
The project will help boost electricity access by improving the performance of the Electricity Distribution Companies (DISCOs) through a large-scale metering program desired by Nigerians for a long time.
In addition, financial support would be provided to private distribution companies only on the achievement of results in terms of access connections, improved financial management and network expansion.
85 million Nigerians don’t have access to grid electricity. This represents 43% per cent of the country’s population and makes Nigeria the country with the largest energy access deficit in the world.
The lack of reliable power is a significant constraint for citizens and businesses, resulting in annual economic losses estimated at $26.2 billion (₦10.1 trillion) which is equivalent to about 2 per cent of GDP.
According to the 2020 World Bank Doing Business report, Nigeria ranks 171 out of 190 countries in getting electricity and electricity access is seen as one of the major constraints for the private sector.
“Improving access and reliability of power is key to reduce poverty and unlocking economic growth in the aftermath of the global COVID-19 pandemic,” says Shubham Chaudhuri, World Bank Country Director.
“The operation will help improve the financial viability of the DISCOs and increase revenues for the whole Nigerian power sector, which is critical to save scarce fiscal resources and create jobs by increasing the productivity of private and public enterprises”.
