Why Nigeria Struggles With Power Supply Despite $3.6bn World Bank Support

Nigeria’s electricity crisis has persisted despite more than two decades of World Bank-backed funding to fix the country’s weak power sector.

Between 2001 and 2024, Nigeria received at least $3.653 billion through World Bank-supported electricity projects. The money targeted transmission upgrades, rural electrification, renewable energy, sector reforms, and recovery programmes.

Yet millions of Nigerians still face poor power supply, frequent outages, repeated grid collapses, and high dependence on petrol and diesel generators.

Billions Spent on Power Projects

Data from the World Bank, as reported by Statisense, showed that Nigeria benefited from several major power-sector projects over 24 years.

They 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 in 2009.

Other interventions include the $145 million Nigeria Power Sector Guarantees Project in 2014, the $486 million Nigeria Electricity Transmission Project in 2018, and the $350 million Nigeria Electrification Project also in 2018.

The World Bank also supported the $750 million Power Sector Recovery Programme in 2020, the $750 million Distributed Access through Renewable Energy Scale-up programme in 2023, and the $500 million Sustainable Power and Irrigation for Nigeria project in 2024.

Together, these projects amount to about $3.653 billion. This does not include regional interconnector and hydro rehabilitation projects where exact figures were not stated.

Power Supply Remains Weak

Despite the huge funding, Nigeria’s electricity supply remains far below what households and businesses need.

The national grid still suffers repeated failures. Power generation also remains too low for a country with Nigeria’s population and economic size.

Many homes, small businesses, hospitals, schools, factories, and offices still rely on generators to stay operational. This raises the cost of living and makes business more expensive.

Manufacturers, in particular, continue to spend heavily on diesel and alternative energy sources because public power supply remains unreliable.

Why the Problem Persists

Experts have linked Nigeria’s power crisis to weak transmission infrastructure, poor investment, market liquidity problems, gas supply shortages, vandalism, and inconsistent policies.

The sector also still struggles with the effects of earlier reform failures, including unresolved challenges from the privatisation of electricity generation and distribution companies.

Although the government and development partners have poured money into the sector, many consumers have seen little improvement in daily electricity supply.

This has raised questions about project implementation, accountability, and whether the funding has delivered real value to ordinary Nigerians.

World Bank Shifts Focus to Renewable Energy

Over the years, the World Bank’s approach has shifted from traditional grid and gas-based projects to renewable energy and decentralised power access.

Recent programmes such as the Distributed Access through Renewable Energy Scale-up initiative and the Sustainable Power and Irrigation for Nigeria project focus more on solar power, rural electricity access, and off-grid solutions.

These projects aim to provide electricity to underserved communities and reduce pressure on the national grid.

The World Bank has said its support seeks to improve electricity access, strengthen transmission infrastructure, and support reforms that can attract private investment.

Nigerians Still Waiting for Results

Poor power supply continues to hurt productivity, weaken small businesses, increase household expenses, and affect essential services such as healthcare and education.

The continued reliance on donor-backed interventions shows how deep Nigeria’s electricity problems remain. It also reinforces the need for stronger execution, better regulation, and clearer accountability across the power sector.