Nigeria’s electricity sector has received at least $3.653 billion in World Bank-backed funding over the past 24 years, but millions of households and businesses continue to struggle with unstable power, frequent grid collapses, and heavy reliance on generators.
An analysis of World Bank-supported power projects from 2001 to 2024 shows that successive interventions aimed to address transmission upgrades, sector reforms, rural electrification, renewable energy expansion, and recovery programmes designed to stabilise the country’s troubled electricity industry.
According to data reported by Statisense, World Bank projects include the $100 million Transmission Development Project in 2001, the $172 million National Energy Development Project in 2005, and the $400 million Nigeria Electricity and Gas Improvement Project launched in 2009. Other initiatives include the $145 million Nigeria Power Sector Guarantees Project in 2014, the $486 million Nigeria Electricity Transmission Project in 2018, the $350 million Nigeria Electrification Project also in 2018, the $750 million Power Sector Recovery Programme approved in 2020, the $750 million Distributed Access through Renewable Energy Scale-up programme introduced in 2023, and the $500 million Sustainable Power and Irrigation for Nigeria project launched in 2024.
Cumulatively, the funding totals around $3.653 billion, excluding regional interconnector and hydro rehabilitation projects for which exact figures are unavailable. Despite these multi-billion-dollar interventions, Nigeria’s electricity supply remains insufficient for the country’s growing population and industrial demand.
The national grid continues to suffer repeated collapses, and power generation has largely fallen short of expectations for Africa’s most populous country. Many households and businesses remain heavily reliant on petrol and diesel generators due to unreliable supply from distribution companies.
Industry experts attribute the persistent crisis to weak transmission infrastructure, liquidity shortfalls in the power market, gas supply constraints, vandalism, inadequate investment, and inconsistent policies.
Over the years, World Bank interventions have shifted from conventional transmission and gas-focused projects toward renewable energy and decentralised electricity access. Recent programmes, such as the Distributed Access through Renewable Energy Scale-up initiative and the Sustainable Power and Irrigation for Nigeria project, are designed to expand solar-powered electricity in underserved and rural communities.
The World Bank has stated that these programmes aim to improve electricity access, strengthen the transmission network, and support reforms capable of attracting private investment into the sector.
However, concerns remain about the pace of implementation and the impact of these interventions on electricity consumers. Businesses across Nigeria continue to cite high energy costs as a major operational challenge, with manufacturers spending significant sums on self-generation due to poor grid supply.
The ongoing electricity crisis affects productivity, small businesses, healthcare delivery, and living conditions nationwide. Experts note that the continued reliance on donor-backed interventions highlights deep structural problems in the power sector, more than a decade after the privatisation of electricity generation and distribution companies.
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