World Bank Supports Nigeria's Power Sector Reforms

On September 3, the World Bank Group announced its backing for reforms to Nigeria's electricity tariff and subsidy frameworks as part of its Country Partnership Framework for Nigeria for fiscal years 2026 to 2032. This support aims to address Nigeria's significant electricity access deficit, with over 86 million people lacking access to electricity.

The World Bank highlighted that the financial position of the electricity sector is unsustainable, with tariff shortfalls projected to reach $2.45 billion by the end of 2025. The reforms will focus on restoring financial sustainability, competitive investment planning, and sound regulation.

The World Bank plans to assist in both on-grid and off-grid solutions, supporting renewable energy expansion and mobilizing private capital. The combined interventions are expected to provide electricity access to more than 32 million Nigerians.

The reforms follow years of government efforts to maintain electricity tariffs below supply costs, contributing to financial pressures in the sector, as identified by Power Minister Joseph Tegbe.