'Solving Problem of Unreliable Power Supply Will Help Nigeria's Covid-19 Recovery Plan' – World Bank
The World Bank has admonished the that for Nigeria’s Covid-19 economic recovery plan to be effective, the country will have to solve its unreliable power supply problem that is causing huge economic losses , estimated at N10 . 1 tn , yearly.
The World Bank in a new report said described the power sector , particularly the distribution segment, as “ operationally inefficient with high losses ” .
It is said that Power sector recovery is critical for the Federal Government of Nigeria ’ s response to the COVID- 19 outbreak .
The report said the efforts to reduce the sizable public expenditures for tariff shortfalls would create critical fiscal space for the government to finance a pro – poor economic stimulus package to protect the poor and vulnerable from the crisis and to support the economy to recover .
It said during the recovery period , improving power sector performance would be central to unlocking economic growth, particularly in the non – oil sectors of manufacturing and services.
The World Bank report says the annual economic losses caused by Nigeria ’ s unreliable power supply have been estimated at N10 . 1 tn or about two per cent of GDP.
Also, according to the report , Nigeria ranks 131st with respect to the overall ease of doing business in the World Bank’ s Doing Business 2020 , with getting access to electricity ranked as one of the major constraints .