Nigeria Remains Trapped In Power Crisis Despite Interventions

Nigeria continues to grapple with a deepening electricity crisis despite receiving more than $3.65 billion in World Bank-backed interventions over the past two decades, raising concerns about the effectiveness of reforms and investments in the sector.

The International Energy Agency (IEA) recently warned that Africa risks remaining energy-poor unless governments and financiers significantly increase investment in energy infrastructure. The agency noted that although Africa accounts for nearly one-fifth of the world’s population, it attracts only about 3% of global energy investment.

Nigeria remains at the centre of the continent’s energy challenge, with over 85 million people lacking access to electricity, the largest electricity access deficit in the world. Even among those connected to the national grid, unreliable supply continues to undermine economic activity and quality of life.

Managing Director of Renaissance Africa Energy Company Ltd., Tony Attah, described energy insecurity as one of the most significant obstacles to development in Nigeria and across Africa. He made the remarks during an Oil and Gas Seminar organised in collaboration with the Public Service Institute of Nigeria.

According to data compiled from World Bank-supported projects between 2001 and 2024, Nigeria benefited from several major power-sector interventions, including transmission upgrades, rural electrification, renewable energy projects and sector recovery programmes. These include the $100 million Transmission Development Project, the $400 million Nigeria Electricity and Gas Improvement Project, the $750 million Power Sector Recovery Programme and the $750 million Distributed Access through Renewable Energy Scale-up initiative.

Despite these investments, the electricity supply remains inadequate. The national grid continues to experience frequent collapses, while generation levels remain far below national demand. Consequently, businesses and households depend heavily on petrol and diesel generators for power.

Industry experts attribute the situation to weak transmission infrastructure, liquidity shortages, gas supply constraints, vandalism and inconsistent policy implementation.

The Federal Government recently cancelled $717.7 million in undisbursed World Bank financing under the Power Sector Recovery Programme after key reform targets were not achieved. The decision effectively ended the programme more than a year before its scheduled closure.

The economic consequences have been severe. According to the Manufacturers Association of Nigeria (MAN), manufacturers spent N1.34 trillion on alternative energy in 2025, up from N781.68 billion in 2023. Rising electricity tariffs, unstable grid supply, foreign exchange volatility and high borrowing costs have further increased production expenses.

MAN said manufacturing capacity utilisation fell from 61.3 per cent in the first half of 2025 to 57.7 per cent in the second half, while more than 18,900 jobs were affected.

Stakeholders insist that while donor-backed interventions have expanded infrastructure and improved access in some areas, Nigeria’s quest for stable, reliable electricity remains far from being realised. Achieving sustainable economic growth, they argue, will require stronger reforms, increased investment and a dependable power supply capable of supporting industrial development.