- Nigeria borrowed over $3.23B in the last four years to fix its power issues, yet generation remains stuck at 4,743 MW.
- Despite significant funding from the World Bank and AfDB, Nigeria’s electricity supply still faces frequent outages and grid collapses.
- Experts call for stronger accountability and management to turn these financial investments into tangible improvements in power generation.
Nigeria borrowed over $3.23B in the last four years to tackle its power crisis but still struggles to generate more than 4,500 megawatts of electricity for its 200 million people.
The World Bank, African Development Bank (AfDB), and Japan International Cooperation Agency provided the bulk of these funds supporting key projects. The World Bank allocated $500 million to the Sustainable Power and Irrigation Project, $750 million to renewable energy initiatives, and $1.5 billion to the Power Sector Recovery Performance-Based Operation. The AfDB contributed $500 million to help Nigeria’s energy transition and implement the new Electricity Act.
The AfDB designed its loan to close Nigeria’s 2024/25 budget gap and support ongoing energy reforms. Despite these significant efforts, power generation remains stagnant. This week, Nigeria’s power generation peaked at 4,743 megawatts, which has remained unchanged for three years.
Power outages continue to disrupt Nigerian businesses and daily life the unreliable electricity supply forces many citizens to depend on costly private generators to meet their energy needs.
So far, in 2024, Nigeria’s power grid has suffered 12 collapses, underscoring its vulnerability. Despite the billions in funding to solve these issues, the power infrastructure continues to fail, leaving citizens without dependable electricity.
The government initiated several reforms, but Nigerians are not seeing the real benefits. The push for renewable energy and grid upgrades still faces significant obstacles. Industry experts emphasise the need for stronger management and accountability to ensure these investments lead to lasting improvements.
Critics argue that while Nigeria secured these loans to solve the country’s power problems, it has shown little progress. The investments have not resulted in a meaningful increase in power supply or reliability.
With billions spent, many wonder why the situation remains essentially the same. Experts point to poor implementation, decaying infrastructure, and weak accountability. Until Nigeria addresses these issues, further funding may not bring significant results.
Nigeria’s energy sector is now at a crucial turning point. With the country deep in debt and its population growing rapidly, the demand for reliable energy keeps increasing, mounting pressure on the government to deliver solutions.
International lenders continue to inject money into Nigeria’s power sector, but Nigeria is responsible for turning these funds into real progress. Without immediate action, Nigeria risks wasting billions and further delaying progress.
As things stand, Nigeria’s power generation struggles persist, and millions of Nigerians remain without dependable electricity. The gap between the financial investment and actual progress remains glaring, leaving Nigerians wondering when they will see improvements in their daily lives.