Nigeria’s Federal Government has cancelled $717.7 million in undisbursed World Bank funding tied to the country’s struggling power sector, effectively ending part of a $1.52 billion electricity recovery programme amid worsening blackouts and financial strain.
According to the World Bank, 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.
The programme, originally approved in 2020, was designed to improve electricity supply reliability, strengthen financial sustainability in the power sector, and enhance accountability among electricity market institutions.
World Bank documents revealed that the operation’s closing date was moved forward from June 30, 2027, to May 31, 2026, meaning no further disbursements will be made under the facility.
The bank explained that Nigeria’s power sector realities had changed significantly due to macroeconomic pressures, tariff shortfalls, and implementation difficulties that affected the pace of reforms under the programme.
Industry experts warned that persistent policy inconsistencies, weak implementation strategies, and structural problems continue to undermine progress in Nigeria’s electricity sector despite years of reforms and international funding support.
BusinessDay reported that Nigeria has received over $3.6 billion in World Bank-related power sector funding since 2001, yet millions of Nigerians still experience prolonged electricity outages and heavy dependence on generators.
The development comes at a time when households and businesses across Nigeria continue to struggle with unstable power supply, rising energy costs, and broader economic hardship.
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