Nigeria Power Crisis: World Bank $3.653bn Funding Exposes Deep Structural Failures in Electricity Sector
Nigeria’s persistent electricity crisis continues to raise tough questions, even as the country benefits from billions of dollars in international support. A former General Manager at the Transmission Company of Nigeria (TCN), Mr. Rasheed Abolomope, has said that over $3.653 billion in World Bank-backed funding has failed to deliver reliable electricity, proving that money alone cannot fix the sector’s deep-rooted problems.
Speaking in an interview, Abolomope explained that Nigeria’s power challenges go far beyond funding gaps. He described electricity as the backbone of modern development, powering industries, healthcare, education, and business growth. Yet, despite decades of reforms and vast natural resources, the country still battles chronic power shortages, forcing millions to rely on petrol and diesel generators.
According to him, the real problem lies in structural weaknesses across the system, including poor governance, weak accountability, regulatory instability, gas supply constraints, and an uncoordinated long-term strategy. He noted that although World Bank-supported projects have targeted transmission upgrades, rural electrification, and market reforms, the impact on everyday electricity supply has remained limited.
Abolomope also highlighted a “vicious cycle” within the Nigerian Electricity Supply Industry (NESI), where distribution companies struggle with low revenue collection, energy theft, and poor metering. This leads to unpaid debts across the value chain—DisCos, NBET, GenCos, and gas suppliers—ultimately weakening the entire system and stalling reliable power delivery to consumers.
He further pointed to transmission bottlenecks, gas dependency, policy inconsistency, and over-reliance on a centralized national grid as major obstacles. With over 80% of electricity generated from gas-fired plants, issues like pipeline vandalism, pricing disputes, and weak infrastructure continue to limit output. He warned that without decentralization, stronger governance, and consistent reforms, Nigeria’s power sector will remain trapped in recurring instability despite heavy investment.
source: newtelegraph