FG CANCELS $717.7M WORLD BANK POWER INTERVENTION LOAN
FG CANCELS $717.7M WORLD BANK POWER INTERVENTION LOAN
The Federal Government of Nigeria has cancelled a $717.7 million World Bank-backed power sector intervention loan, following a formal request and a mutual agreement between both parties to discontinue the financing arrangement under the Power Sector Recovery Performance-Based Operation. According to documents obtained from the World Bank, the decision reflects evolving realities within Nigeria’s electricity sector and challenges in meeting key reform milestones required under the programme. The intervention, originally part of a broader $1.52 billion power sector recovery initiative, was designed to support reforms aimed at improving electricity supply reliability, strengthening sector finances, and enhancing operational efficiency across Nigeria’s power value chain.
However, the government’s request to cancel the remaining portion of the facility effectively brings the programme to an early close, with both sides agreeing that continuation was no longer aligned with current sector priorities and implementation conditions. The cancellation marks a significant shift in Nigeria’s engagement with performance-based external financing for power reforms, a sector that has long faced structural challenges including tariff shortfalls, liquidity constraints, and infrastructure inefficiencies. Officials noted that the move was not abrupt but followed sustained discussions between Nigerian authorities and the World Bank on the feasibility and effectiveness of continuing the programme under existing conditions. The development has drawn attention within policy circles, as the power sector remains a key focus of Nigeria’s broader economic reform agenda. The report was originally published by Channels Television, which cited official documents confirming the cancellation and its implications for the remaining funding under the programme.
