World Bank Supports Nigeria's Power Sector Reforms

The World Bank Group (WBG) announced its support for reforms to Nigeria's electricity tariff and subsidy frameworks as part of its Country Partnership Framework for the Federal Republic of Nigeria for FY26-FY32. The WBG aims to improve electricity access and reliability for households and businesses through both on-grid and off-grid solutions, aligning with Nigeria’s Mission 300 Compact targets.

Currently, Nigeria has the world's largest electricity access deficit, with over 86 million people lacking electricity. The financial position of the electricity sector is unsustainable, with tariff shortfalls projected at $2.45 billion by the end of 2025.

The WBG's support will facilitate private capital mobilization for renewable energy expansion and grid densification, targeting electricity access for over 32 million Nigerians. The framework includes assistance in developing public-private partnerships and investment frameworks across the electricity generation, transmission, and distribution segments, alongside project preparation and transaction structuring to attract private investors.