Over the past 24 years, Nigeria’s electricity sector has received at least $3.65 billion in World Bank-backed funding, yet millions of households and businesses continue to endure unreliable supply, frequent grid collapses, and a heavy dependence on generators.
A review of World Bank-supported projects between 2001 and 2024 shows a series of interventions targeting transmission upgrades, sector reforms, rural electrification, renewable energy, and recovery programs aimed at stabilizing the troubled power industry.
These include the $100 million Transmission Development Project (2001), $172 million National Energy Development Project (2005), $400 million Nigeria Electricity and Gas Improvement Project (2009), $145 million Power Sector Guarantees Project (2014), $486 million Electricity Transmission Project (2018), $350 million Nigeria Electrification Project (2018), $750 million Power Sector Recovery Programme (2020), $750 million Distributed Access through Renewable Energy Scale-up (2023), and the $500 million Sustainable Power and Irrigation for Nigeria project (2024).
The total excludes funding for regional interconnector and hydro rehabilitation projects, for which figures were not disclosed.
Despite these multi-billion-dollar interventions, Nigeria’s electricity supply remains grossly inadequate for its growing population and industrial needs. The national grid is plagued by frequent collapses, and power generation consistently falls short of expectations for Africa’s most populous nation. As a result, many homes and businesses remain reliant on petrol and diesel generators due to unreliable supply from distribution companies.
Industry analysts attribute the persistent crisis to weak transmission infrastructure, liquidity shortfalls, gas supply bottlenecks, vandalism, insufficient investment, and policy inconsistencies.
World Bank interventions over the years also reflect a shift in strategy—from traditional transmission and gas-focused projects to initiatives promoting renewable energy and decentralized electricity access. Recent programs, such as the Distributed Access through Renewable Energy Scale-up and the Sustainable Power and Irrigation for Nigeria project, focus on expanding solar-powered electricity, especially in underserved and rural communities.
According to the World Bank, these efforts are designed to improve electricity access, strengthen the grid, and attract private investment.
However, concerns remain about the pace of implementation and the tangible impact of these interventions on consumers. Businesses across Nigeria continue to cite high energy costs and the burden of self-generation amid poor grid supply. The ongoing electricity crisis undermines productivity, hampers small businesses, disrupts healthcare delivery, and diminishes living standards nationwide.
Stakeholders say the continued reliance on donor-backed interventions underscores deep structural problems in the sector, persisting more than a decade after the privatization of generation and distribution companies.
While these interventions have expanded infrastructure and improved access in some regions, a stable and reliable nationwide power supply remains elusive.
Recently, The PUNCH reported that the Federal Government cancelled $717.7 million in undisbursed World Bank financing for Nigeria’s electricity sector, terminating the remaining portion of a $1.52 billion power sector recovery programme. Documents from the World Bank indicate the cancellation followed a joint decision by the Federal Government and the Bank, prompted by changing sector realities and the failure to achieve key reform milestones. The programme’s closing date was brought forward to May 31, 2026, ending the operation over a year ahead of schedule.
Expert Insight
Professor Dayo Ayoade, an energy expert at the University of Lagos, blamed corruption and poor governance for the sector’s woes. He warned that Nigeria’s economy will continue to suffer unless the power sector is brought under effective control, pointing to loopholes and inefficiencies that make self-generation costly for ordinary citizens and small businesses.
Ayoade argued that the government must take the lead, ensuring judicious use of resources and undertaking comprehensive reforms, including the removal of electricity subsidies. “Nigerians will have to pay more for power. Tariffs must reflect the cost of delivery. We also need to streamline the sector and tackle corruption,” he said.
He emphasized that poor governance is a key reason the sector remains dysfunctional, noting, Billions of dollars have been spent with little improvement. We can’t continue this way. Unless these issues are addressed, a reliable electricity supply will remain out of reach.
