Despite $3.65bn spent on improving electricity, Nigeria’s power crisis persists

• Nigeria has received over $3.65 billion in World Bank funding for power sector projects in over 20 years.

• Investments targeted transmission, distribution, metering, and rural electrification.

• Despite funding, Nigeria continues to face unstable electricity and frequent blackouts.

• Many households and businesses still rely on generators due to unreliable grid supply.

Nigeria’s electricity sector continues to face deep structural challenges despite decades of investments running into billions of dollars from development partners and government-backed interventions aimed at improving generation, transmission and distribution across the country.

The Federal Government recently estimated that Nigeria will require more than $100 billion in combined public and private investment to achieve stable and reliable 24-hour electricity supply nationwide. The figure covers the entire power value chain, including generation expansion, transmission upgrades, distribution infrastructure and gas supply systems.

According to the Ministry of Power, a significant portion of this investment would be needed to add about 20,000 megawatts of electricity capacity, strengthen transmission networks, and expand distribution infrastructure to reach households and businesses across urban and rural areas.

Despite these long-term projections, Nigeria’s power supply remains inconsistent, with frequent grid instability, low supply reliability, and continued dependence on petrol and diesel generators by households and businesses.

Over the years, international partners have also played a major role in financing Nigeria’s electricity sector. The World Bank and other development institutions have supported projects worth over $3.65 billion, targeting rural electrification, grid expansion, metering programmes, and renewable energy development.

However, industry data and project outcomes suggest that these investments have not yet translated into stable nationwide electricity access, as structural inefficiencies in the sector continue to limit impact.

In a related development, the Rural Electrification Agency (REA) recently announced new financing initiatives aimed at expanding electricity access in underserved communities. The agency disclosed that it is mobilising additional funding, including a ₦100 billion financing arrangement with a commercial bank, to accelerate deployment of mini-grid and renewable energy projects under its national electrification programme.

The REA said the funds will support renewable energy service companies in deploying mini-grids to communities without access to the national grid, a move expected to improve electricity access for millions of Nigerians in rural and peri-urban areas.

These interventions come at a time when Nigeria continues to grapple with persistent electricity shortages, with many communities still experiencing long hours of blackout and limited grid connectivity.

While installed capacity has improved over the years, actual power delivered to consumers remains significantly lower than demand, creating a widening gap between infrastructure spending and real-world electricity supply.

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For many Nigerians, the reality remains unchanged: unreliable electricity, rising energy costs, and continued reliance on self-generated power.

As government and private sector actors push for further reforms, the challenge remains whether the projected $100 billion investment requirement will finally translate into stable electricity supply for the country’s over 200 million population.