According to The ICIR, the Federal Government has cancelled $717.7 million in undisbursed World Bank funding meant for Nigeria’s power sector, ending a reform programme plagued by unmet targets and persistent electricity shortages.
The World Bank said the decision was mutual, with both parties agreeing to discontinue the project after key performance conditions were not met. The facility was part of efforts to stabilise the electricity market, improve distribution efficiency and reduce tariff shortfalls.
However, worsening blackouts, weak infrastructure, FX pressures and rising subsidy gaps undermined progress. Officials also cited macroeconomic shocks and cost recovery challenges across the value chain. Nigeria remains exposed to World Bank lending despite the cancellation, raising concerns about power sector reforms and electricity reliability nationwide.
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