Nigeria’s electricity sector has received at least $3.653 billion in World Bank-backed funding over the past 24 years, yet millions of households and businesses across the country continue to grapple with unstable power supply, frequent national grid collapses and an overwhelming reliance on generators.

An analysis of World Bank-supported electricity projects between 2001 and 2024 shows that successive interventions targeted transmission upgrades, sector reforms, rural electrification, renewable energy expansion and recovery programmes designed to stabilise Nigeria’s struggling power industry.

According to data from the World Bank, as highlighted by Statisense, major interventions include the $100 million Transmission Development Project launched in 2001, the $172 million National Energy Development Project in 2005 and the $400 million Nigeria Electricity and Gas Improvement Project introduced in 2009.

Other projects include the $145 million Nigeria Power Sector Guarantees Project in 2014, the $486 million Nigeria Electricity Transmission Project in 2018, the $350 million Nigeria Electrification Project also launched in 2018, the $750 million Power Sector Recovery Programme approved in 2020, the $750 million Distributed Access through Renewable Energy Scale-up Programme introduced in 2023 and the $500 million Sustainable Power and Irrigation for Nigeria Project launched in 2024.

Collectively, the projects account for approximately $3.653 billion in funding, excluding regional interconnector and hydro rehabilitation initiatives whose financial details were not disclosed.

Electricity Challenges Persist Despite Billions in Funding

Despite the substantial investments, Nigeria’s electricity supply remains inadequate for its growing population and expanding industrial sector.

The national grid continues to experience repeated collapses, while power generation has remained below the level required to meet national demand. As a result, households and businesses still depend heavily on petrol and diesel generators due to unreliable electricity supply from distribution companies.

Industry experts have attributed the persistent crisis to weak transmission infrastructure, liquidity challenges within the power market, gas supply constraints, vandalism, inadequate investment and policy inconsistencies.

Shift Towards Renewable Energy Solutions

The pattern of interventions reflects a gradual shift in the World Bank’s strategy from conventional transmission and gas-focused projects toward renewable energy and decentralised electricity access.

Recent programmes such as the Distributed Access through Renewable Energy Scale-up initiative and the Sustainable Power and Irrigation for Nigeria Project are designed to expand solar-powered electricity access, particularly in rural and underserved communities.

The World Bank has maintained that these initiatives are intended to improve electricity access, strengthen transmission infrastructure and support reforms capable of attracting private sector investment into Nigeria’s power sector.

However, concerns remain regarding the pace of implementation and the actual impact of these interventions on electricity consumers nationwide.

Businesses Continue to Face High Energy Costs

Businesses across Nigeria continue to cite rising energy costs as one of their biggest operational challenges, with manufacturers spending significant amounts on self-generation due to unreliable grid power.

The persistent electricity crisis has also negatively affected productivity, healthcare delivery, small businesses and overall living conditions across the country.

Stakeholders argue that Nigeria’s continued dependence on donor-backed interventions highlights the depth of structural challenges facing the power sector, more than a decade after the privatisation of electricity generation and distribution companies.

While the interventions have contributed to infrastructure development and improved electricity access in some communities, a stable and reliable nationwide electricity supply remains largely elusive.

Federal Government Cancels $717.7m World Bank Facility

The development comes after the Federal Government cancelled $717.7 million in undisbursed World Bank financing earmarked for Nigeria’s electricity sector.

Documents obtained from the World Bank revealed that the cancellation affected the remaining balance of a $1.52 billion Power Sector Recovery Programme following a joint decision by both parties to discontinue financing due to evolving sector realities and challenges in meeting key reform milestones.

According to the World Bank restructuring paper, the entire undisbursed balance was cancelled, while the programme’s closing date was moved forward from June 30, 2027, to May 31, 2026.

Expert Blames Corruption, Governance Failures

Reacting to the situation, Professor of Energy at the University of Lagos, Dayo Ayoade, blamed corruption and poor governance for Nigeria’s persistent electricity challenges.

According to him, the country’s economy will continue to suffer unless decisive reforms are implemented within the power sector.

“Until the power sector is fixed, Nigerians and the economy will continue to suffer. Self-generation is inefficient and expensive for households and businesses,” he said.

Ayoade called for comprehensive reforms, improved governance, stronger accountability mechanisms and the gradual removal of electricity subsidies to ensure tariffs reflect the true cost of power generation and distribution.

He also warned against the proliferation of institutions within the sector, stressing the need for streamlined operations and stronger anti-corruption measures.

“Billions of dollars have been spent on power projects over the years with little improvement in electricity supply. We must address governance failures, leakages and corruption if we are serious about solving Nigeria’s electricity crisis,” he added.

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Nigeria’s new Minister of Power, Olasunkanmi Tegbe, has assured Nigerians that repeated national grid collapses, unstable electricity supply, and vandalism of power infrastructure will soon be addressed through urgent reforms.

Tegbe gave the assurance on Wednesday during his screening before the Senate plenary in Abuja, where lawmakers later confirmed his appointment after extensive questioning on the state of the country’s electricity sector.

The screening session, presided over by Senate President Godswill Akpabio, focused heavily on the recurring collapse of the national grid, weak transmission infrastructure, and the growing liquidity crisis in the power sector.

Lawmakers warned that Nigerians were tired of repeated promises and demanded measurable improvements within a short period.

Senator Tahir Monguno described the persistent collapse of the national grid as a major setback to Nigeria’s economic and industrial growth.

“Grid collapse has become a recurring decimal, undermining development. Transmission has failed to match generation capacity,” he said.

Responding, Tegbe admitted that the sector’s challenges were deeply rooted and linked to poor coordination, inadequate gas supply, and weak enforcement of technical standards.

“Grid collapse is not accidental; it reflects deeper structural problems,” he stated.

The minister-designate announced a 100-day reform plan aimed at stabilising the grid and improving public accountability through a performance monitoring system.

“If there are no results in three months, there will be none in six. Nigerians should hold us accountable,” he declared.

Tegbe also accused certain individuals of benefiting from the inefficiencies in the electricity sector and vowed to confront sabotage directly.

“There are elements that do not want the system to work because they benefit from its failure. We will take them on,” he said.

On the issue of vandalism, he described attacks on power infrastructure as a national security threat and promised closer collaboration with security agencies, including the military and the Office of the National Security Adviser.

The minister-designate further acknowledged the worsening liquidity crisis in the sector, estimated at about N6tn, and described the current financial structure as unsustainable.

He pledged reforms that would support market-reflective electricity tariffs while ensuring affordability for vulnerable Nigerians.

“Electricity pricing must reflect market realities, but affordability remains essential. We will ensure a fair balance,” he said.

Lawmakers also pressed Tegbe on rural electrification and metering challenges affecting millions of consumers nationwide.

In response, he promised to expand mini-grid and renewable energy projects, especially solar-powered systems, to underserved communities.

“Decentralised energy will be key to reaching underserved communities and ensuring inclusive access,” he added.

Deputy Senate President Barau Jibrin described the power sector as one of Nigeria’s biggest economic challenges, stressing that industries cannot survive without reliable electricity supply.

Despite the intense scrutiny, senators expressed cautious optimism in Tegbe’s ability to deliver reforms, citing his professional background and reform proposals.

In his closing remarks, Tegbe assured Nigerians that transparency, discipline, and collaboration would drive improvements in the sector.

“This is a difficult assignment, but progress is achievable with transparency, discipline and collaboration. Nigerians will see change,” he said.

President Bola Tinubu had forwarded Tegbe’s nomination to the Senate following the resignation of former Power Minister Adebayo Adelabu, who stepped down to pursue the Oyo State governorship ambition.

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Abuja Electricity Distribution Plc (AEDC) has clarified that the ongoing electricity outages affecting Lafia, Keffi, Nasarawa, Masaka, and surrounding communities in Nasarawa State are largely due to factors beyond its control.

The company cited limited power allocations from the national grid, compounded by seasonal and infrastructural challenges, as the primary reasons for the extended disruptions.

In a statement released on Wednesday, AEDC highlighted that power allocations to Lafia have recently hovered between 5MW and 10MW, far below the demand required to meet the needs of residents, businesses, and government institutions in the state capital and adjoining areas.

“The Management of Abuja Electricity Distribution Plc (AEDC) wishes to inform our valued customers in Lafia, Keffi, Nasarawa, Masaka, and other affected communities that the current supply constraints are largely due to national-level factors beyond our direct control,” the statement read.

According to AEDC, Nigeria’s power sector experiences significant limitations during the dry season, which typically runs from November to April. During this period, hydropower generation declines due to low dam water levels, while several thermal plants face reduced gas supply caused by pipeline vandalism, operational disruptions, and broader supply-chain issues. These factors collectively result in lower overall electricity generation, reducing the amount of power available for distribution companies across the country, including AEDC.

The company also explained that disruptions in gas supply and system limitations have occasionally led to dramatic drops in allocations from the national grid, affecting energy availability for end-users. “Despite our efforts, power allocations have at times been insufficient to meet the growing demand, creating frustrations for our customers,” AEDC said, emphasizing its commitment to transparency and accountability in communicating these challenges.

AEDC assured that, where possible, it has increased supply to Lafia to approximately 10MW, even as pressures from neighboring regions and national limitations persist. The company also called for cooperation among stakeholders, including generation companies, gas suppliers, regulators, and DisCos, to ensure that electricity supply stabilizes across affected regions.

The ongoing outages have sparked concerns among residents and businesses, who face extended periods without electricity, affecting both domestic life and commercial activities. Energy experts argue that these recurring shortages underline structural weaknesses in Nigeria’s power sector, highlighting the need for improved coordination, investment in infrastructure, and proactive planning to address growing urban energy demands.

“The current power situation is not only a technical challenge but also a socioeconomic one,” said an energy analyst who requested anonymity. “Limited electricity availability in fast-growing states like Nasarawa impacts productivity, disrupts business operations, and can stall economic growth if prolonged.”

AEDC further clarified that the outages are not due to mismanagement at the distribution level but are symptomatic of systemic issues affecting Nigeria’s energy supply chain. This includes insufficient gas deliveries, operational downtime at generation plants, and inadequate maintenance of transmission infrastructure.

For residents in affected areas, the company urged patience and understanding, stressing that solutions require national-level interventions and coordinated responses from multiple stakeholders. AEDC said it remains committed to restoring consistent power supply wherever possible and is actively monitoring grid allocations to maximize available energy.

The situation in Nasarawa serves as a reminder of broader national challenges in the power sector, where seasonal variations, infrastructural deficits, and supply-chain vulnerabilities can create significant disruptions for consumers. Analysts recommend that federal and state governments prioritize investment in energy infrastructure, enhance monitoring systems, and promote greater collaboration between gas suppliers, power generators, and distribution companies.

AEDC reaffirmed its empathy with customers affected by the outages, noting that while the company strives to provide reliable electricity, addressing systemic power sector challenges requires collective action. For now, residents and businesses in Lafia, Keffi, Nasarawa, and Masaka must navigate ongoing constraints while awaiting coordinated national-level interventions to stabilize supply and support economic activity.

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The Federal Government says the revival of the Aluminium Smelting Company of Nigeria (ALSCON) in Ikot Abasi, Akwa Ibom State, will inject 540 megawatts (MW) of electricity into the national grid.

Minister of Power Adebayo Adelabu announced this during a visit to the plant, pledging to reconnect it to the grid and complete the abandoned 330kV substation in the area.

Adelabu described ALSCON as a key industrial asset that had remained idle for decades due to lack of power. He said all six turbines of 90MW each were in good condition, and full capacity could be achieved once transmission lines from Ikot Ekpene to Ikot Abasi are completed.

The minister added that the project could be expanded to 660MW and would create over 15,000 jobs while cutting aluminium imports.

ALSCON’s adviser, Viacheslav Krylov, said the firm targets 200,000 metric tonnes of annual output within six years but needs stable power and a stronger grid connection.

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Lagos State, Nigeria’s economic nerve centre, is now generating more power off-grid than the entire country’s national electricity grid, according to a newly released infrastructure report by the Africa Finance Corporation (AFC). The revelation throws into sharp relief the growing disconnects between energy demand and supply in Africa’s most populous nation.

The State of Africa’s Infrastructure Report 2025, obtained on Monday, describes a continent facing a deepening energy access crisis. While global development institutions aim to connect 300 million sub-Saharan Africans to electricity by 2030, the report warns that current trajectories may leave access levels virtually unchanged.

In Lagos alone, off-grid power generation is estimated to exceed 19 gigawatts (GW) a staggering figure compared to the national grid, which struggles to consistently deliver between 4 and 5 GW. The findings underscore a broader continental trend: Africa’s largest economies are increasingly powered not by central utilities but by private, embedded, and self-contained energy systems.

A Continent Powering Itself, But at a Cost

The AFC highlights the paradox of this “off-grid boom.” On one hand, it demonstrates market adaptability and private sector resilience; on the other, it reflects institutional failure and the erosion of public infrastructure.

“In Nigeria and South Africa, a growing share of electricity is now generated outside central grids,” the report notes. “From households relying on petrol generators to industrial clusters building their own gas-fired plants, the shift is accelerating and so is its cost.”

This decentralised growth is not limited to Lagos. Across Nigeria, erratic public supply has pushed homes and businesses into energy self-sufficiency. Among large industrial users, captive power plants on-site facilities often powered by diesel or gas—have become the norm. These installations range in capacity from 20 MW to over 200 MW, particularly in energy-intensive sectors such as cement, mining, and manufacturing.

South Africa tells a similar story. A 2022 policy reform lifting licensing restrictions on embedded generation triggered a surge in private investment. Installed capacity jumped from just 23 MW in 2019 to 4.5 GW by 2023, with over 1 GW of solar power added in 2024 alone.

A Symptom of Systemic Failure, Not Progress

While the numbers may suggest progress, the AFC report offers a sobering perspective: the widespread turn to self-generation is not a sign of prosperity but of desperation.

“Going off-grid is rarely a low-cost solution,” it states. “It is a last resort.” A 2019 study by the Energy for Growth Hub found that self-generated power in Nigeria and South Africa costs twice as much as grid electricity and up to four times more in Ethiopia. The economic implications are profound: higher production costs, reduced industrial competitiveness, and increased reliance on fossil fuels.

Moreover, official energy statistics fail to fully capture the extent of the transformation. International databases often focus on solar installations popular among residential and commercial users but thermal generation from diesel and gas remains the dominant form of self-generation, particularly in heavy industry.

Africa’s ‘Low-Energy Trap’ and the Risk of Stagnation

The report paints a stark picture of Africa’s energy trajectory. From 2013 to 2023, electricity generation across the continent grew by less than 2% annually, far below the 2.42% population growth rate and 3% economic growth rate. For the first time in two decades, per capita electricity consumption is declining, indicating not just stagnation, but regression.

In 2024, Africa added just 6.5 GW of utility-scale power a third of India’s additions and dwarfed by the 48.6 GW deployed in the United States. Without radical acceleration, the report warns, Africa risks being trapped in a “low-energy equilibrium” a state where electricity connection rates improve, but the quality, quantity, and reliability of power remain inadequate for economic transformation.

This energy paradox is particularly painful given Africa’s vast untapped resources. The continent boasts the world’s largest undeveloped hydropower reserves, significant geothermal potential, and receives among the highest levels of solar irradiation globally.

Yet these resources remain largely stranded hemmed in by poor infrastructure, limited investment, and inconsistent policy frameworks. “Abundance has become a constraint,” the AFC report concludes.

The roadmap out of the current impasse is clear but politically and financially demanding massive investment in grid infrastructure, targeted policy reforms, and a renewed commitment to regional energy integration. Without this, energy self-sufficiency will remain the domain of the privileged and the powerful, while the broader economy continues to suffer under the weight of unreliable supply.

As urbanisation and industrial demand intensify across the continent, the choices before African governments have never been more urgent or more binary.

Either scale up and modernise public energy infrastructure or continue down a path of fragmented, unequal, and expensive self-generation that hampers economic growth.

“Self-generation may keep the lights on,” the report notes, “but it cannot power a continent’s future.”

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The national grid experienced another system collapse, throwing many Nigerians into darkness.

Our correspondent reports that the grid lost power generation some minutes after 11 on Wednesday morning.

The spokesperson of the Transmission Company of Nigeria, Ndidi Mbah, has yet to respond to a message sent to her by our correspondent as she said she was at a function.

However, sources in some power generation companies confirmed to our correspondent that there was a general grid disturbance on Wednesday morning.

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Our correspondent reports that there was a trip-off and the power went off before noon.

Most power plants on the grid lost generation when the incident occurred.

At 11 am, hourly power generation was 4064 megawatts but this dropped to 1,203MW at 12 pm and 0.00MW at 1 pm.

This is about the first time the grid will collapse in 2025 after it experienced a line tripping in January.

In 2024, the grid collapsed 12 and over 100 times in 10 years.

On its X handle on Wednesday, the Abuja Electricity Distribution Company confirmed the development.

“Dear Valued Customer, We regret to inform you that a system disturbance occurred on the national grid at 11:34 am today causing a power outage across our franchise areas.

“While gradual restoration of power supply has commenced, please be assured that we are working closely with relevant stakeholders to fully restore electricity as soon as the grid is stabilised. Thank you for your understanding and patience as we work to serve you better,” the post reads.

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This was announced on the official X handle of the National Grid, saying, ”Another Grid Setback Experienced.”
This incident follows four previous collapses that occurred within a single week at the end of last month, marking the tenth grid disturbance of 2024.

Recall Tribune Online reported on Tuesday that the National Grid suffered another setback, which was also announced on the official X handle of the National Grid, saying, ”BREAKING: National Grid suffers another setback. Restoration soon!

The post BREAKING: Again, National Grid collapses second time in three days appeared first on Housing TV Africa.

The grid suffered multiple collapse in the month of October, with the Federal Government promising a permanent solution to the embarrassment.

As of 2:35pm, hourly generation readings showed that none of the the Power Generation Company had a single megawatt.

Details later…

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The AEDC confirmed the collapse happened around 11:21 am on the same day in a post on X (formerly Twitter).  

The Disco noted that it is working with relevant stakeholders to ensure electricity is restored across its area and the country.  

• It stated, “The Management of Abuja Electricity Distribution Plc (AEDC) wishes to inform its valued customers that the power outage being experienced is a result of a system failure from the national grid at 11:21 hours today, 4th February 2024 which has led to a nationwide power outage. 
• “Be rest assured that we are working with the relevant stakeholders to restore power as soon as the grid is stabilized. We appeal for your patience.” 

The latest national grid collapse is the first in the year 2024. Last year, the national grid reportedly collapsed three times.

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However, in the years between 2017 and 2022, the national grid collapsed 42 times according to the Transmission Company of Nigeria (TCN) as reported by Nairametrics.  

Nigeria’s last National grid collapse was around December 11, 2023, when power transmission dropped from 4,032.80 megawatts at about 12 pm to 43 megawatts at 1 pm. 

Gas shortage affecting power generation 

Last week, the Minister of Power, Bayo Adelabu stated that the sub-optimal performance of the Omotosho and Olorunsogo power stations stems from a shortage of gas supply to the stations. Both plants were reportedly operating around 25% of their total capacity.  

The minister noted there is a need for top-level discussions within the ministry to improve gas utilization for power generation.

He stressed that if the government is reluctant to provide funding subsidies, transitioning to a more cost-effective tariff structure would be preferable. 

Source: Nairametrics:

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