The World Bank has just released $500 million to support the implementation of reforms to restructure the electricity sector in Nigeria. Allocated in the form of a loan, the financing will improve access to electricity in the country while promoting the expansion of the national electricity grid.
Electricity supply is one of the major challenges facing the Nigerian economy, which has to deal with repeated blackouts and other deficits. The financial support made available to electricity distribution companies will make it possible to "make the necessary investments to rehabilitate electricity networks and install modern electricity meters in order to issue more accurate bills while providing better quality service to people already connected to the network," the international financial institution said in a statement.
This financing is part of the electricity sector recovery program (PSRO). “Only Discos [distribution companies] who have clearly declared their performance in public reports with an updated flow of their funds, based on strict verification of their activities by an independent third party, will be eligible for the program. The program will also make the meters available at an affordable price to all consumers in Nigeria,” said Nataliya Kulichenko, the World Bank's team leader for the program.
Note that in 2021, the deficit in the Nigerian electricity sector is expected to increase by $1 billion.