Nigeria Cancels $717.7m World Bank Power Loan Amid Deepening Blackouts
The Federal Government has formally cancelled the remaining $717.7m undisbursed under a $1.52bn World Bank power sector recovery programme. This move follows mounting tariff shortfalls and persistent implementation challenges across the electricity value chain. The cancellation was requested by the government and approved jointly with the World Bank. It brings the programme’s closing date forward to May 31, 2026, more than a year ahead of schedule. While the original 2020 operation delivered substantial gains, additional financing approved in 2023 only saw 9% disbursement before being halted. Despite earlier improvements in tariff recovery and supply reliability, Nigeria’s power sector still struggles with high distribution losses, transmission bottlenecks and a widening revenue–cost gap. The Accountant-General has warned that Nigeria may reject future loan facilities if approval and disbursement delays continue. Nigeria remains the third-largest borrower from the Bank’s concessional arm, underscoring its reliance on global financing.
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