Nigeria Dumps $717.7m World Bank Power Loan Over Unmet Reform Targets

The Federal Government has officially cancelled $717.7 million in undisbursed World Bank intervention funds earmarked for Nigeria’s troubled power sector.

The cancellation followed a formal request by the Federal Government and a mutual decision by both parties to discontinue financing under the Power Sector Recovery Performance-Based Operation, citing changing realities in the sector and the failure to meet critical reform targets.

Documents obtained from the World Bank revealed that the decision effectively brings to an end the outstanding balance of the $1.52 billion power sector recovery programme.

The scrapped sum represents the entire undisbursed portion of the intervention package originally designed to support reforms and improve electricity supply across the country.

The development comes amid growing concerns over delays associated with international loan facilities. It followed an earlier warning by the Accountant-General of the Federation, Dr. Shamseldeen Ogunjimi, that Nigeria may reject loan arrangements from the World Bank if persistent delays in approval and disbursement continue, stressing that prolonged timelines could weaken the country’s willingness to proceed with such financing agreements.