The World Bank has approved a $750 million loan to the Federal government of Nigeria.

The aim of the loan is to help improve electricity supply in the country which is currently in a sorry state.

The World Bank released a statement yesterday, Tuesday, 24th of June 2020.

According to the World Bank, the loan is for the power sector recovery operation (PSRO) to achieve financial sustainability and enhance accountability in the sector.

Moreover, the bank stated the PSR operation will see to it that 4,500 MWh/hour of electricity is supplied to the distribution grid by 2022.

“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.

“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,” the statement read.

“The objective of this operation is to help turn around the power sector and set it on a fiscally sustainable path.

“This is particularly urgent at a time when the government needs all the fiscal resources it can marshal to help protect lives and livelihoods amidst the COVID-19 pandemic,” the statement added.

According to the Bank, about 47% of Nigerians lack access to grid electricity and those who do have access, are faced with regular power failure.

World Bank country director for Nigeria, Shubham Chaudhuri, said improving the supply of electricity will lift no less than 100 million Nigerians out of poverty.