The World Bank Group has said it will support reforms to Nigeria’s electricity tariff and subsidy frameworks as part of efforts to restore financial sustainability in the power sector.
The World Bank disclosed this in its Country Partnership Framework for the Federal Republic of Nigeria for the period FY26-FY32.
According to the document, the World Bank’s intervention will focus on improving electricity access and reliability for households and businesses through both on-grid and off-grid solutions, in line with Nigeria’s Mission 300 Compact targets.
“The WBG will also support reforms to restore financial sustainability, focusing on tariff and subsidy frameworks, competitive investment planning, and sound sector regulation,” the document stated.
The World Bank said Nigeria currently had the world’s largest electricity access deficit, with more than 86 million people without access to electricity. It noted that frequent power outages have forced households and businesses to rely on expensive generators, which had negatively affected the productivity of firms.
The development finance institution further stated that the financial position of the electricity sector remained unsustainable, with tariff shortfalls estimated at $2.45bn by the end of 2025.
