The Federal Government has cancelled $717.7 million in unused funding from a World Bank-supported electricity reform programme.
According to a World Bank restructuring document, Nigeria officially requested the cancellation on March 26, 2026, and both sides agreed to end the funding arrangement and focus on other support options.
As part of the decision, the programme will now end earlier than planned moving from June 30, 2027, to May 31, 2026 and no more money will be released under the project.
The programme, known as the Power Sector Recovery Operation (PSRO), was created to improve electricity supply, strengthen the finances of the power sector, and make the industry more efficient.
However, the World Bank said the programme struggled because Nigeria’s electricity sector became financially weaker.
One major challenge was the naira devaluation and foreign exchange reforms introduced in 2023, which increased the cost of generating electricity because gas used by power
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