World Bank cancels Nigeria’s $718 million loan request

The World Bank and the Nigerian government have jointly cancelled a $717.7 million loan facility initially approved to support reforms in the country’s struggling electricity sector.

Documents from the World Bank showed that the cancelled amount represented the remaining balance of the $1.52 billion Power Sector Recovery Performance-Based Operation introduced to improve electricity supply, strengthen the sector’s finances, and reduce the burden on public funds.

The cancellation comes amid worsening tariff shortfalls, rising operational costs, and persistent challenges affecting Nigeria’s power industry.

Programme Ends Earlier Than Planned

According to the World Bank restructuring paper, no further disbursement will be made under the programme following approval of the restructuring.

“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 bank stated.