Over the past four years, Nigeria has borrowed more than $3.23 billion to address its electricity challenges. Despite this significant investment, the country continues to generate only around 4,500 megawatts of power for its population of over 200 million people.
Major international organizations, including the World Bank, African Development Bank (AfDB), and Japan International Cooperation Agency (JICA), have provided loans to Nigeria in a bid to improve its power sector.
The funds were allocated to several large-scale projects. For instance, the World Bank approved $500 million for the Sustainable Power and Irrigation Project, $750 million for renewable energy initiatives, and $1.5 billion for the Power Sector Recovery Performance-Based Operation. Additionally, the AfDB contributed $500 million to support Nigeria’s transition to cleaner energy sources.
According to the AfDB, its loan was aimed at closing the budget financing gap for the 2024/25 fiscal year while also supporting the implementation of Nigeria’s new Electricity Act and Energy Transition Plan.
However, these efforts have yielded little improvement. As of Thursday, Nigeria’s peak power generation stood at 4,743 megawatts—a figure that has remained relatively stagnant over the past three years.
Frequent power outages remain a significant issue, with the country experiencing 12 national grid collapses in 2024 alone. Despite the substantial financial investment, Nigeria’s power sector struggles to deliver consistent and reliable electricity.