Over the past four years, Nigeria has borrowed more than $3.23 billion to address its electricity challenges, yet the country still struggles to produce more than 4,500 megawatts of power for its population of 200 million.
International organizations such as the World Bank, the African Development Bank (AfDB), and the Japan International Cooperation Agency have provided these funds. The loans were issued in significant amounts, including $500 million from the World Bank for the Sustainable Power and Irrigation Project, $750 million for renewable energy projects, and $1.5 billion for the Power Sector Recovery Performance-Based Operation. The AfDB also contributed $500 million to help Nigeria transition to cleaner energy sources.
The AfDB stated their loan would “help close the financing gap in the Federal Budget for the 2024/25 fiscal year, specifically supporting the implementation of Nigeria’s new Electricity Act and the Nigeria Energy Transition Plan.”
Despite these investments, Nigeria’s power supply has seen little improvement. As of Thursday, the country’s highest power generation stood at 4,743MW, a figure that has remained stagnant for the past three years.
Frequent power outages continue to plague the nation, with 12 national grid failures recorded in 2024 alone, highlighting the persistent challenges in Nigeria’s electricity sector.
