Connect with us

Energy and Power

Nigeria Cancels $717m World Bank Power Loan Amids Electricity Dip

Published

on

President Bola Ahmed Tinubu PBAT
Spread the love

By Our Reporter

Nigeria has cancelled the remaining $717.7 million World Bank loan to boost the county’s power sector, ending a major electricity recovery programme earlier than planned as the country struggles to improve electricity supply and rising financial pressure in the sector.

The World Bank and Nigeria reportedly agreed to discontinue the funding arrangement after key reform targets failed.

The cancelled funds were part of the Power Sector Recovery Performance-Based Operation introduced to improve electricity supply, strengthen the finances of the sector and support reforms across the industry.

Initially approved in 2020 with about $752.5 million in funding, in 2023, the World Bank added another $763.5 million to deepen reforms and address long-standing problems in the sector. Combined, the programme was valued at about $1.52 billion.

However, the latest restructuring document showed that the additional financing struggled to meet major conditions required for disbursement. The World Bank said no further payments would be made under the programme after the cancellation of the undisbursed balance.

The bank also moved the project’s closing date from June 2027 to May 2026, effectively ending the operation ahead of schedule.

According to the report, Nigeria’s electricity sector still faces deep structural problems despite years of reforms and intervention funds. The bank identified weak distribution networks, transmission bottlenecks, poor revenue collection and mounting tariff shortfalls as some of the major issues affecting the sector.Nigerian debt analysis

The World Bank noted that the situation worsened after the liberalisation of the foreign exchange market in 2023, which caused a sharp depreciation of the naira and increased the cost of gas used for power generation.

See also  House blames DisCos for Nigeria's electricity crisis

It explained that over 70 per cent of electricity supplied to the national grid depends on gas priced in United States dollars. At the same time, electricity tariffs remained largely unchanged for most consumers, creating a wide gap between operating costs and revenues generated in the sector.

The report stated that tariff shortfalls rose from N140 billion in 2022 to about N1.9 trillion in both 2024 and 2025, putting fresh pressure on government finances.

The World Bank further disclosed that only about nine per cent of the additional financing package had been disbursed before the cancellation. It described the implementation progress under the programme as “Moderately Unsatisfactory.”

We recall Joe Ajaero, NLC president’s recent interview in which he said Nigeria’s electricity lacked the critical strategic planning and the infrastructure to buoy it for effective, steady and improved power supply.

He pointed out that no matter the funds been applied to it, there would be no good story would ever come from it without addressing the core variables.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Energy and Power

Court Sentences ex-Power Minister, Saleh, 75 years in Absentia Over N22 bn projects

Published

on

By

Spread the love

By Our Reporter

Amidst declaring him a fugitive, Justice James Omotosho of the Federal High Court, has sentenced former Minister of Power, Saleh Mamman, to 75 years in prison for corruptly embezzling funds meant for the Mambilla and Zungeru hydroelectric power projects.

The trial judge on Wednesday found Mamman guilty on a 12-count charge and held that the prison terms would run consecutively, bringing the total sentence to 75 years.

Justice Omotosho further ordered that the jail term would begin from the day the convict is arrested.

The judge also directed all security agencies to arrest Mamman wherever he is found.

The court equally ordered that all monies and properties recovered from the former minister be forfeited to the Federal Government, while directing him to refund the outstanding balance from the alleged N22bn linked to the Mambilla and Zungeru hydroelectric power projects.

The case had lingered for years before the judge finally decided to sentence the alleged culprit in absentia.

See also  Tinubu seeks Senate approval for ₦1.15trn loan to fund 2025 Budget
Continue Reading

Energy and Power

Power privatisation in Nigeria is Grand Deception–Ajaero, NLC President

Published

on

By

Spread the love

By Our Correspondent

The privatisation of power in Nigeria has been described as grand deception of Nigerian people by government according to the Nigeria Labour Congress (NLC), president, Comrade Joe Ajaero.

Speaking at National Union of Electricity Employees’ (NUEE) 2026 annual conference of women and youth in Abuja, the NLC leader accused the government of creating slush funds ahead of the 2027 elections, using the proposed N2tn to N3tn bailout for power generation companies as a ‘ruse’.

Comrade Ajaero, averred that over a decade after the unbundling of the power sector, electricity generation had remained stagnant at between 4,000 and 5,000 megawatts, “the same level as before privatisation.
“A decade after the much-celebrated privatisation, what do we have? Instead of progress, we witness regression. Instead of light, we have darkness.

“The national grid collapses with the frequency of a faulty generator, sometimes plunging the entire nation into blackout. This is not the turnaround we were promised; this is a well-orchestrated robbery of the Nigerian people.”

Ajaero accused distribution companies of persistently rejecting allocated loads from the Transmission Company while Nigerians grappled with frequent grid collapses and soaring tariffs.
The labour leader criticised the privatisation
of the Power Holding Company of Nigeria (PHCN) successor firms as a fraudulent transfer of public wealth to investors who entirely lacked both the technical capacity and financial strength to manage the power assets.

“The so-called investors did not bring fresh capital into this country. They borrowed heavily from Nigerian banks, draining domestic credit and worsening pressure on the naira.
“They acquired DISCOs and GENCOs on a shoestring budget and now expect Nigerian workers to pay for their loans through outrageous electricity tariffs.”

See also  Tinubu seeks Senate approval for ₦1.15trn loan to fund 2025 Budget

Ajaero further frowned at the band classification system, which categorises consumers into Bands A, B and C based on hours of supply, saying it had become a backdoor mechanism for tariff hikes.

“Band A consumers pay through their noses but still receive epileptic power supply. This government is asking Nigerians to pay for darkness. Banding is the institutionalisation of extortion.
“Electricity is a right, not a commodity to be auctioned to the highest bidder while the poor are left in the dark.”

On the Federal Government’s plan to pay between N2tn and N3tn to generation companies as subsidy arrears, the NLC said there was no justification for “such a massive bailout to private firms that have failed to deliver.”

“The electricity subsidy claim remains a phantom. That N3tn is another ruse and goes nowhere. We see this as a clandestine move to settle the boys as the 2027 elections approach. Every kobo of the treasury belongs to the workers and people of Nigeria.”

The NLC insisted that electricity must be restored as a social service, arguing that no country had successfully run its power sector purely as a profit-driven enterprise without imposing hardship on citizens.
“It is only the State that can bear the huge capital investment required and the long gestation period for returns. The private sector has failed. It is time to take back the power for the people,” he stated.

While acknowledging the provisions of the new Electricity Act that devolved power generation and distribution to states, warned that decentralisation alone would not solve the structural challenges plaguing the sector.
The labour body called for a national stakeholders’ summit comprising workers’ unions, manufacturers and experts to develop what it termed a “People’s Power Roadmap” focused on affordable and stable electricity, public investment in generation and transmission infrastructure, service-reflective tariffs and a reversal of the privatisation model.
“The Nigerian people cannot continue to pay for darkness. When power is not available, it cannot be affordable. Power must be returned to the people,” Ajaero added.

Continue Reading

Energy and Power

APC Rising Leaders Fellowship: Marwa, Onyeagba, Shagaya, Ojudu, Abiola to Head 1700 Nationwide Application Review Committee

Published

on

By

All Progressive Congress APC Flag
Spread the love

By Saint Mugaga

Former Nigerian Ambassador to Burundi, HE Elijah Onyeagba; DG Citizen and Leadership Center, Rinsola Abiola; Executive Director, Galaxy Backbone Hon Segun Olulade; Former SSA to President Buhari Mr Wole Aboderin; SSA to the President on Community Engagement Southwest, Moremi Ojudu; ED North Central Development Commission, Princess Atika Ajana; Founder of WFM Toun Okewale Sonaiya; SSA to the President on Entrepreneurship Development Chalya Shagaya are among the 170 chairpersons and members of the shortlist committee to review over 1700 applications received from young Nigerians nationwide for the Rising Progressive Young Leaders Fellowship (RPLF).

The Rising Progressive Leaders Fellowship (RPLF) is a flagship and elite leadership development initiative of the Progressive School of Politics, Leadership and Statecraft (PSPLS) – the human capital development arm of the APC National Youth Wing, purposefully designed to produce the best of the best, a new cadre of high value, governance ready young leaders prepared for public sector leadership and national service.

Other committee chairpersons and members includes Mr Bode Olugbore; Hon Ife Adebayo; Dr Sanusi Ohiare; Mr Kingsley Mordi; Barr Zainab Buba Marwa; Mr Abu Andrew; Engr Prof Abubakar Sadiq Zubair, Hon Ginika Tor and more.

According to the APC National Youth Leader, Dr Dayo Israel, the Fellowship targets exceptional emerging leaders with the capacity to contribute meaningfully to governance today, while being deliberately groomed to shape leadership and statecraft tomorrow. It is structured as a rigorous, immersive, and transformational experience that combines intellectual depth, practical exposure, and elite mentorship to prepare the next generation of progressive leaders for roles across the public sector, political institutions, and policy making spaces.

See also  NDPHC commences routine maintenance of 430MW Geregu power plant

“RPLF is delivered as a high intensity, cohort based fellowship, featuring a residential component that removes participants from everyday distractions and places them in a focused environment of learning, reflection, collaboration, and leadership formation. This immersive model fosters discipline, peer bonding, critical thinking, and a deep appreciation of the demands of public leadership and service in line with the Renewed Hope Agenda of the President Bola Ahmed Tinubu”, the APC Youth Leader, concluded.

The Fellowship draws on a distinguished faculty and resource network comprising former governors, former ministers, senior public servants, seasoned legislators, private sector leaders, policy experts, and thought leaders. Fellows benefit from direct interaction with serving and former senior government officials across both the legislative and executive arms of government, providing rare insight into real-world governance, policy negotiation, political leadership, and institutional decision making.

The application review process will commence on Wednesday, January 27, 2026, while further updates on the review exercise and final selection process will be communicated in due course.

Continue Reading

Recent

President Bola Ahmed Tinubu PBAT President Bola Ahmed Tinubu PBAT
Energy and Power2 hours ago

Nigeria Cancels $717m World Bank Power Loan Amids Electricity Dip

Spread the loveBy Our Reporter Nigeria has cancelled the remaining $717.7 million World Bank loan to boost the county’s power...

General News2 hours ago

2007: Abuja Court Dismisses Suit Against ex- President Jonathan

Spread the love–Plaintiff Fined N20m By Son Tertsea, Abuja A Federal High Court in Abuja presided over byJustice Peter Lifu...

General News5 hours ago

Kogi State Takes Anti-Internet Fraud War to Schools

Spread the loveThe ravaging effects of cybercrime on society have convinced Kogi State Government for the mounting of Anti-Internet Fraud...

General News11 hours ago

Calls for Justice Groe Over Death of 17-Year-old in Makurdi as Activist Alleges Polive Cover-up

Spread the lovePolice say suspect died after gunfire exchange; family demands independent probe By Felix Umande, Makurdi Outrage is mounting...

Politics1 day ago

Olofu Secures ADC Senatorial Ticket For Benue South, Sets Sights on Moro, Agbo in 2027

Spread the loveBy Felix Umande, Makurdi Former Benue State Commissioner for Finance, Dr. David Olofu, has emerged as the African...

General News1 day ago

Aondoakaa Taps 38-Year-OLD Ogbenjuwa as Running Mate, Vows to Prioritize Security and Youth Inclusion

Spread the loveBy Felix Umande, Makurdi The Peoples Democratic Party, PDP, governorship candidate for Benue State in the 2027 election,...

General News1 day ago

Dangote Refinery Ends Africa’s “Economic Slavery” says Billionaire Otedola

Spread the loveAfrica, including Nigeria, imported most of its shell fuel like a country without crude oil. Now, Nigerian billionaire,...

General News1 day ago

Africa’s Largest University Becomes First on the Continent to Own an Airport

Spread the loveThe University of South Africa has become the first African university to own an airport. The 20-hectare facility...

Politics2 days ago

Kuraun Demands to be Declared Winner of Benue APC Guber Primary, Cites Non-Compliance By Rivals

Spread the loveBy Felix Umande, Makurdi Dr. Jeffrey Kuraun, one of the aspirants in the Benue State All Progressives Congress,...

Politics2 days ago

Ex-Reps Spokesman Zakari Mohammed Emerges Kwara ADC Guber Candidate

Spread the loveBy Philip Nyam One-time House of Representatives spokesperson, Hon Zakari Mohammed has emerged the gubernatorial candidate of African...