The World Bank has given a loan of USD 2.5 Billion to Nigeria to help boost the power sector of the West African country.
According to the World Bank, about 80 million Nigerians lack access to sustainable electricity. However, the bank hopes the latest input will help turn this around.
It is worth noting that the World Bank has made several interventions in the past but believes more need to be done. The World Bank’s Vice President for Africa, Hafez Ghanem said this time around, a new set of programs will be introduced to even the odds.
Nigeria is perceived as the economic juggernaut of Africa, however, the country has been riddled with one of the highest unemployment rates in the world while it’s commercial hub, Lagos ranks as one of the most unlivable cities in the world.
According to reports, about 90 million Nigerians live in abject poverty as a result of lack of adequate infrastructure and amenities, one of which is power. Sadly, this number represents almost 50 percent of the country’s estimated 190 million population.
The World Bank is, however, committed to enabling the Nigerian economy to become more competitive. The USD 2.5 Bn loan is to develop the nation’s industries and create employment for the youth.
According to Ghanem, the bank’s limelight on Nigeria is helping the country fight poverty and better the living standard for its people. The World Bank is also championing a women intervention program to enable them to become more financial included. The initiative is also providing children with education and helping the disabled.
One of the areas the World Bank is also working on is digital transformation which it sees as a good avenue to turn around failing economies.
As part of its plans for Nigeria, the World Bank wants to support the adoption of technology to, in turn, unlock the potential of other areas of the country’s economy – agriculture, industry, and services among others.
Ghanem said, “Nigeria has a comparative advantage in that area because of the youth, a majority of the population is young. So if we want to create jobs, we need to invest much more in the digital economy.”
Last year, the World Bank approved a USD 486 Mn pack of funds to improve Nigeria’s electricity transmission network of infrastructure. The money was also channeled towards the rehabilitation of substations and power lines in the country.
Also, just last month, the Muhammadu Buhari-led administration inked a deal with Siemens. The agreement is expected to lead to the production of 25,000 MW of electricity by 2025.
