World Bank Backs Nigeria Power Sector Tariff, Subsidy Reform
The World Bank has committed to supporting Nigeria's power sector through a new partnership framework focused on tariff and subsidy reforms. The initiative aims to address the country's massive electricity access deficit and improve grid reliability by mobilizing private capital for renewable energy.
Why it matters
Improving Nigeria's power infrastructure is critical for economic growth and reducing the country's reliance on expensive, inefficient private generators.
The World Bank Group has said it will support reforms to Nigeria’s electricity tariff and subsidy frameworks as part of efforts to restore financial sustainability in the power sector. The World Bank disclosed this in its Country Partnership Framework for the Federal Republic of Nigeria for the period FY26-FY32. According to the document, the World Bank’s intervention will focus on improving electricity access and reliability for households and businesses through both on-grid and off-grid solutions, in line with Nigeria’s Mission 300 Compact targets. “The WBG will also support reforms to restore financial sustainability, focusing on tariff and subsidy frameworks, competitive investment planning, and sound sector regulation,” the document stated. The World Bank said Nigeria currently had the world’s largest electricity access deficit, with more than 86 million people without access to electricity.
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