News

$3.2 Billion Spent, Yet Nigeria’s Power Generation Stuck at 4,500MW

Published by admin on January 11th, 2025.

$3.2 Billion Spent, Yet Nigeria’s Power Generation Stuck at 4,500MW

Nigeria has borrowed over $3.23 billion in the past four years to address its electricity challenges, yet the country still struggles to generate more than 4,500 megawatts of power for its 200 million citizens.

International organizations such as the World Bank, the African Development Bank, and the Japan International Cooperation Agency have provided these funds through various loans aimed at boosting the nation’s energy capacity.

These funds have been allocated to several major initiatives, including $500 million for the Sustainable Power and Irrigation Project, $750 million for renewable energy efforts, and $1.5 billion for the Power Sector Recovery Performance-Based Operation from the World Bank. The African Development Bank also contributed $500 million to support Nigeria’s transition to cleaner energy sources.

The African Development Bank explained that its loan would help address funding gaps in the 2024/25 federal budget, specifically aiding in the implementation of Nigeria’s new Electricity Act and the Energy Transition Plan.

However, despite this influx of financial support, Nigeria’s power generation has shown little progress. On Thursday, for instance, the country generated a peak of 4,743MW, which has been consistent for the past few years. The country continues to experience regular power outages, with twelve national grid failures recorded in 2024 alone.