Nigeria's Power Crisis Persists Despite $3.6bn World Bank Loans

Nigeria's electricity sector has been supported by $3.6 billion in loans from the World Bank from 2001 to 2024, aimed at improving transmission, rural electrification, and renewable energy. Projects include a $100 million transmission development project initiated in 2001, a $172 million national energy development project in 2005, and a $750 million power sector recovery program approved in 2020.

Despite these investments, the country struggles with inadequate electricity supply, frequent grid collapses, and a heavy reliance on diesel generators due to poor distribution. The World Bank's recent focus has shifted towards renewable energy and decentralized access, with programs designed to enhance solar power access in underserved rural communities.

However, the pace of implementation and overall impact remain concerning, as high energy costs continue to challenge businesses. Additionally, the Nigerian government canceled $717.7 million in undisbursed World Bank financing for the power sector recovery program, reflecting ongoing issues in achieving necessary reforms.