World Bank to disburse $750m for Nigeria’s power sector in 2021

Nigeria will be able to count on the $ 750 million planned by the World Bank to support the reforms of the electricity sector from 2021. The disbursements, which will be made in three installments, will end in 2023 and will allow the country to improve its electricity supply.

The World Bank has announced that it will begin disbursing the $ 750 million allocated to the Nigerian power sector in 2021. The operation that falls under the Nigerian Power Sector Recovery Program (PSRP) will end in 2023 according to the institution. . It will therefore allocate $ 426 million to the program in 2021, and $ 162 million in 2022 and 2023.

The ambition of the PSRP is to improve the reliability of the electricity supply in the country, increase the financial health of the sector and improve its management. According to the World Bank, the fiscal pressures generated by the contraction of at least 3% of GDP expected for this year, will make electricity sector reforms even more urgent.

In 2019, the shortfall in the electricity sector amounted to $ 1.72 billion, or the equivalent of 0.4% of GDP, or more than the budget allocated to health. “The funding gap for the year 2020 is $ 8.1 billion and this deficit will grow by $ 1 billion per year without the implementation of reforms in the electricity sector,” said the World Bank.