Nigeria’s Power Woes Persist: $3.2bn Borrowed, Generation Stuck at 4,500MW
By Okafor Joseph Afam
January 10, 2025
Nigeria has borrowed over $3.23 billion in the last four years to address its electricity challenges, yet power generation capacity stubbornly hovers around 4,500 megawatts, a glaring inadequacy for a nation of over 200 million people. Funds from global institutions such as the World Bank, the African Development Bank (AfDB), and the Japan International Cooperation Agency (JICA) have been poured into the sector, but significant improvement remains elusive.
The loans came in substantial tranches aimed at specific projects. 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 (PSRO). Similarly, the AfDB contributed $500 million to bolster Nigeria’s energy transition goals, including the implementation of the newly enacted Electricity Act.
According to the AfDB, their loan was intended to “help close the financing gap in the Federal Budget for the 2024/25 fiscal year, specifically supporting the implementation of Nigeria’s new Electricity Act and the Nigeria Energy Transition Plan.”
Despite these massive inflows of funds, the results remain disheartening. As of this week, the highest recorded power generation was 4,743MW, which mirrors figures from three years ago. This stagnation underscores the inefficacy of current strategies and the sector’s persistent structural issues.
Nigeria continues to grapple with chronic electricity outages, with twelve national grid collapses recorded in 2024 alone. These frequent blackouts disrupt daily life, stifle economic productivity, and frustrate the populace, who have endured decades of unreliable power supply.
The lingering question is why these monumental investments have not translated into improved power delivery. Analysts blame a combination of inefficiency, corruption, and poor project execution. Without a fundamental overhaul of governance and accountability in the sector, the billions borrowed risk becoming another tragic example of wasted resources.
For now, the dream of stable electricity for Nigeria remains just that—a dream.
