WORLD BANK BACKS NIGERIA’S POWER SECTOR REFORMS

The World Bank Group has expressed support for Nigeria’s planned reforms to electricity tariffs and subsidies as part of efforts to improve the financial sustainability of the power sector.

The bank disclosed this in its Country Partnership Framework for Nigeria covering 2026 to 2032, outlining areas where it plans to support the country’s development priorities.

According to the framework, the World Bank will support reforms to the tariff and subsidy system, alongside stronger regulation and improved investment planning in the electricity sector.

The bank said Nigeria still has the largest electricity access deficit in the world, with more than 86 million people lacking access to electricity. It also noted that frequent outages have forced households and businesses to depend heavily on generators, increasing operating costs.

The World Bank estimated that electricity tariff shortfalls reached about $2.45bn by the end of 2025, highlighting the financial pressures facing the sector.

As part of its intervention, the bank plans to help mobilise private investment in renewable energy, grid expansion and other electricity infrastructure.

It will also continue supporting renewable energy programmes focused on expanding mini-grids and standalone solar systems.

The World Bank said the reforms are expected to improve electricity access and reliability while creating a more financially sustainable power market in Nigeria.