ABUJA, Nigeria (VOICE OF NAIJA)-Nigeria’s electricity sector has attracted at least $3.653bn in World Bank-backed financing over the past 24 years, yet millions of households and businesses across the country continue to face unstable power supply, frequent national grid collapses, and heavy dependence on generators.
An analysis of World Bank-supported electricity projects between 2001 and 2024 shows that successive interventions focused on transmission upgrades, sector reforms, rural electrification, renewable energy expansion, and recovery programmes aimed at stabilising the country’s struggling power industry.
Data from the World Bank, as reported by Statisense, indicate that the projects include the $100m Transmission Development Project launched in 2001, the $172m National Energy Development Project in 2005, and the $400m Nigeria Electricity and Gas Improvement Project introduced in 2009.
Other interventions include the $145m Nigeria Power Sector Guarantees Project in 2014, the $486m Nigeria Electricity Transmission Project in 2018, the $350m Nigeria Electrification Project also in 2018, the $750m Power Sector Recovery Programme approved in 2020, the $750m Distributed Access through Renewable Energy Scale-up programme introduced in 2023, and the $500m Sustainable Power and Irrigation for Nigeria project launched in 2024.
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The combined value of these projects stands at about $3.653bn, excluding regional interconnector and hydro rehabilitation initiatives for which no specific figures were provided.
Despite these multi-billion-dollar interventions, Nigeria’s electricity supply has remained insufficient for its population and industrial needs.
The national grid has continued to experience repeated collapses, while power generation has remained below expectations for Africa’s most populous nation.
Many households and businesses still rely heavily on petrol and diesel generators due to unreliable supply from distribution companies.
Industry experts have consistently attributed the crisis to weak transmission infrastructure, liquidity challenges in the power market, gas supply constraints, vandalism, inadequate investment, and policy inconsistencies.
The interventions over the years also reflect a gradual shift in World Bank strategy from traditional transmission and gas-based projects towards renewable energy and decentralised electricity access.
Recent programmes such as the Distributed Access through Renewable Energy Scale-up initiative and the Sustainable Power and Irrigation for Nigeria project aim to expand solar-based electricity access, particularly in underserved and rural communities.
The World Bank has said the programmes are intended to improve electricity access, strengthen the transmission network, and support reforms capable of attracting private sector investment into the industry.
However, concerns remain over implementation speed and overall impact on consumers. Businesses across the country continue to cite high energy costs as a major operational burden, with manufacturers spending heavily on self-generation due to poor grid supply.
The persistent electricity crisis has also continued to affect productivity, small businesses, healthcare delivery, and living standards nationwide. Stakeholders say continued reliance on donor-backed interventions highlights the depth of structural challenges in the sector more than a decade after the privatisation of power generation and distribution companies.
They note that while the interventions have expanded infrastructure and improved access in some areas, a stable nationwide electricity supply remains largely elusive.
The Federal Government cancelled $717.7m in undisbursed World Bank financing for Nigeria’s troubled electricity sector, effectively terminating the remaining portion of a $1.52bn power sector recovery programme.
Documents from the World Bank website showed that the cancellation followed a formal request by the Federal Government and a joint decision by both parties to discontinue financing under the Power Sector Recovery Performance-Based Operation due to changing sector conditions and failure to meet key reform targets.
According to the World Bank restructuring document, the cancelled amount represents the full undisbursed balance under the programme.
“The restructuring will result in the cancellation of the entire undisbursed balance in the amount of $717.7m equivalent, and no further disbursements will be made under the programme following approval of this restructuring,” the bank stated.
The bank also confirmed that the programme’s closing date has been moved forward from June 30, 2027, to May 31, 2026, effectively ending it more than a year earlier than planned.
The cancelled facility was part of a broader intervention aimed at improving Nigeria’s electricity sector.
A Professor of Energy at the University of Lagos, Dayo Ayoade, blamed corruption and weak governance for the persistent electricity challenges.
According to him, the economy will continue to suffer “provided we don’t take control of the power sector”.
Ayoade said inefficiencies and leakages remain widespread, warning that the economy will keep struggling as self-generation remains costly for households and small businesses.
“Until the power sector is put right, the economy will continue to suffer, Nigerians will continue to suffer, and there is no way out of this. Self-generation doesn’t work because it’s inefficient.
“The kind of resources you need to generate power, like gas, are out of the hands of private individuals or companies. So, it is very important that the government takes the lead,” he said, calling for more efficient use of resources.
The professor urged comprehensive reforms of the sector and called for the removal of electricity subsidies.
“That reform requires us to tell one another the truth. Nigerians will have to pay more money for power. Tariffs must reflect the cost of delivering electricity.
Also, creating new institutions like GAMCO and others all the time means there is a proliferation of institutions in the sector. We need to streamline the sector; we need to control corruption,” he added.
Ayoade further stated that governance remains central to the sector’s challenges, noting that “billions of dollars were spent on power in the past with no appreciable electricity output.”