World Bank to Support Nigeria’s Electricity Tariff, Subsidy Reforms

The World Bank Group says it will support reforms to Nigeria’s electricity tariff and subsidy frameworks as part of efforts to restore financial sustainability and attract more private investment into the power sector.

Under its FY2026–FY2032 Country Partnership Framework for Nigeria, the bank said it would focus on expanding reliable electricity access for households and businesses through on-grid and off-grid solutions, in line with the country’s Mission 300 targets.

The World Bank noted that more than 86 million Nigerians currently lack access to electricity, while frequent outages have forced households and businesses to depend heavily on costly generators. It also estimated that electricity tariff shortfalls could reach $2.45 billion by the end of 2025, worsening the sector’s financial challenges.

As part of the reforms, the bank plans to support renewable energy projects, mini-grids, standalone solar systems and private investment across the generation, transmission and distribution segments. It said the combined interventions are expected to provide electricity access to more than 32 million Nigerians.

The World Bank said its support would also include project preparation, transaction structuring and transparent competitive processes to strengthen public-private partnerships and attract investment. The reforms come as the Federal Government continues efforts to address the power sector’s liquidity crisis and improve electricity supply nationwide.