The World Bank has approved $500m (dollars) to help boost access to electricity in Nigeria and improve the performance of the electricity distribution companies in the country in its “Nigeria Distribution Sector Recovery Program” (DISREP).
In a statement issued on Friday titled,
‘Nigeria to Improve Electricity Access and Services to Citizens,’
The World Bank said financial support would be provided to private distribution companies only on achievement of results in terms of access connections, improved financial management and network expansion.
According to the statement, the program will help improve service quality, as well as the financial and technical performance of distribution companies by providing financing based on performance and reduction of losses.
It is also intended to ensure that distribution companies make necessary investments to rehabilitate networks, install electric meters for more accurate customer billing and to improve quality of service for those already connected to the grid and help strengthen the financial and technical management of DISCOs to improve the transparency and accountability of the distribution sector.
Speaking further, World Bank Country Director, Shubham Chaudhuri said the operation will help improve the financial viability of the electricity DISCOs and increase revenues for the whole Nigerian power sector,
According to the statement, 85 million Nigerians don’t have access to grid electricity which represents 43% per cent of the country’s population and makes Nigeria the country with the largest energy access deficit in the world.
Also citing the 2020 World Bank Doing Business report, the report described the lack of reliable power in Nigeria as a significant constraint for citizens and businesses, resulting on annual economic losses estimated at $26.2 billion – equivalent to about 2% of GDP.
Nigeria is also ranked 171 out of 190 countries in “getting electricity and electricity access” and is seen as one of the major constraints for the private sector
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