The Federal Government has withdrawn from a $717.7 million World Bank funding package meant to support reforms in Nigeria’s troubled power sector.
The cancelled funds formed part of the larger $1.52 billion Power Sector Recovery Programme created to improve electricity supply, restore financial stability in the sector and reduce pressure on government finances.
According to World Bank documents, the decision was reached after both parties agreed to discontinue the Power Sector Recovery Performance-Based Operation following challenges in meeting major reform targets and changes within the sector.
With the move, the entire remaining undisbursed balance under the programme has now been cancelled.
“The restructuring will result in the cancellation of the entire undisbursed balance in the amount of $717.7m equivalent, and no further disbursements will be made under the Program following approval of this restructuring,” the World Bank stated.
The recovery programme was introduced by the Federal Government as part of efforts to address long-standing problems in the electricity industry. It was expected to help eliminate tariff shortfalls gradually, improve the performance of power institutions, and strengthen regulation and accountability across the sector.
