he World Bank has approved of $750 million for the Power Sector Recovery Programme (PSRP) through the International Development Association (IDA).1 The disbursement plan to commence in 2021 is as follows: $426 million in 2021 and $162 million in 2022 and 2023, respectively, summing up to $750 million. The recovery plan being set up is to enable Nigeria achieve a more reliable electricity supply and improve the accountability of the power sector. Presently, approximately 47 percent of the population do not have access to national grid electricity. The population that has access are subjected to frequent power outages, a major constraint that costs the Nigerian economy around $28 billion, annually – equivalent to 2 percent of the GDP. Furthermore, the aim of the PSRP is to make Nigeria a more financially sustainable nation and it will achieve this by increasing the annual electricity supplied to the national grid by 4,500 MWh/hour by 2022. Aside improving service delivery, the additional liquidity will strengthen the balance sheet of distribution companies and enhance their ability to attract private finance. Furthermore, the government will be better positioned to utilize the resources previously used to bail out the power sector for other development spending.
October 27, 2020
Nigeria Economic Update (Issue 38)
Related
Nigeria Economic Update (Issue 18)
Inflation
rate continued its upward trajectory in the week under review. Specifically,
the Consumer Price Index (CPI) increased by 1.39 per cent, from 11.38 per cent
in February to 12.77 per cent in March, 20161. Remarkably, this is the
highest rate since July 2012, representing a 4-year high. While both components
of the CPI rose in the period, the food sub-index was largely the main driver
of the increase in the CPI, with a growth rate of 1.39 per cent between
February and March. The persistent scarcity in petroleum products, especially
Premium Motor Spirit (PMS), has increased transportation costs and the price of
food items.