Nigeria’s power generation remains stagnant at 4,500MW, despite securing over $3.23 billion in loans within four years. Institutions like the World Bank, African Development Bank, and Japan International Cooperation Agency have funded several power projects. However, the country continues to grapple with frequent blackouts and unreliable electricity supply.
Challenges Hampering Power Generation Growth
Nigeria’s power generation projects face significant implementation challenges, including legal disputes and slow legislative approvals. These delays have hindered critical projects such as the $500 million Nigeria Distribution Sector Recovery Programme.
Global Financial Support for Power Generation
The World Bank and other institutions have approved substantial loans for Nigeria’s power sector. Projects like the $750 million Distributed Access through Renewable Energy Scaleup aim to enhance electricity access and sector efficiency.
Persistent Issues in Nigeria’s Power Generation Sector
Despite an installed capacity of 12,500MW, Nigeria generates only 4,500MW for a population exceeding 200 million. Issues like grid collapses, vandalism, and ageing infrastructure persist.
Efforts to Improve Power Generation and Sustainability
The government plans to invest heavily in renewable energy as part of its energy mix. These efforts aim to provide Nigerians with at least 20 hours of daily electricity by 2027.
Accountability in Grid Financing
Stakeholders stress the need for transparency in managing power sector funds. Experts question the rationale behind borrowing for a sector that has been partially privatised.
Expert Opinions on Grid Failures
Power experts argue that loans must translate into tangible improvements in electricity supply. They also call for better auditing and accountability in project execution.
Grid Collapse and Its Limitations
Over 12 national grid collapses were recorded in 2024, reflecting ongoing inefficiencies. Despite borrowing billions, it remains below target.
Renewed Government Focus on Improvement
The government acknowledges the need for $10 billion over the next decade to achieve 24hour power supply nationwide. Officials promise to address inefficiencies in the sector.
