World Bank Funding Exceeds $3.6bn
Nigeria’s electricity sector received at least $3.653 billion in World Bank-backed funding between 2001 and 2024. Despite the massive investment, millions of Nigerians still struggle with poor power supply.
Data from the World Bank showed that several projects targeted transmission upgrades, sector reforms, rural electrification and renewable energy development.
According to figures compiled by Statisense, the funding covered multiple power sector programmes over the last two decades.
Major Power Projects Funded
The projects included the $100 million Transmission Development Project launched in 2001.
Other interventions were the $172 million National Energy Development Project in 2005 and the $400 million Nigeria Electricity and Gas Improvement Project in 2009.
The World Bank also approved the $145 million Nigeria Power Sector Guarantees Project in 2014.
In 2018, Nigeria received $486 million for the Nigeria Electricity Transmission Project and $350 million for the Nigeria Electrification Project.
Further support followed with the $750 million Power Sector Recovery Programme in 2020.
The bank later approved another $750 million under the Distributed Access through Renewable Energy Scale-up programme in 2023.
In 2024, it introduced the $500 million Sustainable Power and Irrigation for Nigeria project.
Power Supply Challenges Remain
Despite the huge investments, electricity supply remains inadequate across the country.
The national grid continues to experience frequent collapses. Power generation also remains below national demand.
As a result, many homes and businesses depend heavily on petrol and diesel generators.
Industry experts blame the crisis on weak infrastructure, liquidity problems, gas shortages, vandalism and policy inconsistencies.
Focus Shifts to Renewable Energy
Recent World Bank interventions have focused more on renewable energy and decentralised power systems.
Programmes such as the Distributed Access through Renewable Energy Scale-up initiative seek to expand solar-powered electricity in rural communities.
Similarly, the Sustainable Power and Irrigation for Nigeria project aims to improve electricity access in underserved areas.
The World Bank said these programmes support reforms, strengthen transmission infrastructure and attract private investment.
Businesses Continue to Face High Energy Costs
Many businesses still struggle with rising energy expenses.
Manufacturers spend significant amounts on self-generated electricity due to unreliable grid supply.
Consequently, poor electricity continues to affect productivity, healthcare services, small businesses and household living conditions.
Stakeholders argued that the sector’s dependence on donor funding reflects deep structural challenges.
They noted that although some projects improved access in certain locations, reliable nationwide electricity remains out of reach.
Government Cancels $717.7m World Bank Facility
Meanwhile, the Federal Government recently cancelled $717.7 million in undisbursed World Bank financing for the power sector.
Documents obtained from the World Bank showed that the cancellation affected the Power Sector Recovery Performance-Based Operation.
The decision followed a request from the Federal Government and mutual agreement between both parties.
According to the World Bank, the programme failed to achieve several key reform targets.
The bank also brought forward the project’s closing date from June 30, 2027, to May 31, 2026.
As a result, no further disbursements will be made under the programme.
Expert Blames Corruption, Poor Governance
A Professor of Energy at the University of Lagos, Dayo Ayoade, blamed corruption and poor governance for the sector’s challenges.
He said the economy would continue to suffer unless authorities address the power sector’s structural problems.
According to him, self-generation remains too expensive for ordinary Nigerians and small businesses.
Ayoade stressed that government must take the lead because critical resources such as gas remain beyond the reach of private operators.
Call for Sector Reforms
The energy expert urged the government to implement comprehensive reforms across the industry.
He also called for cost-reflective electricity tariffs and the removal of subsidies.
Furthermore, he warned against creating additional agencies that could complicate regulation.
According to him, stronger governance, transparency and accountability are essential for lasting improvement.
Ayoade noted that previous governments spent billions of dollars on power projects with little improvement in electricity supply.
He maintained that addressing corruption and plugging leakages remain critical to transforming the sector.
