FG Drops $717.7m World Bank Power Loan
By Wellington Jopelo
The Federal Government has cancelled a $717.7 million World Bank loan meant for power sector projects, raising fresh concerns about funding for electricity reforms and infrastructure development in Nigeria.
The decision comes amid ongoing efforts by the government to restructure the power sector and reduce challenges linked to electricity generation, transmission, and distribution across the country.
Reports indicated that the cancelled facility was part of financial support arrangements targeted at improving Nigeria’s struggling power industry and expanding access to electricity.
Officials familiar with the development said the government decided to discontinue the loan arrangement following changes in funding priorities and project implementation plans.
The power sector has remained one of Nigeria’s biggest economic challenges, with businesses and households continuing to face unstable electricity supply despite repeated reforms and investments.
Analysts say the cancellation could affect some planned projects, especially those linked to power infrastructure upgrades and sector modernization.
However, government sources insist that alternative funding options and policy adjustments are being considered to ensure ongoing projects are not abandoned.
The development comes at a time Nigeria is pushing broader energy reforms, including efforts to increase local power generation, improve transmission networks, and attract private investment into the sector.
Economic experts say the government may also be trying to reduce borrowing pressures and review existing loan commitments amid concerns over rising debt obligations.
Stakeholders within the energy industry are expected to closely monitor how the cancellation may affect future electricity projects and overall power sector reforms.
Despite the setback, authorities maintain that improving electricity supply remains a major priority due to its importance to economic growth, industrial expansion, and job creation across the country.