World Bank to support Nigeria’s electricity tariff reforms, subsidy framework
Abuja, Sept. 2026 – The World Bank Group says it will support Nigeria in its electricity tariff reforms and subsidy frameworks.
The global institution disclosed this in its Country Partnership Framework for Nigeria for 2026–2032 fiscal years.
It said the reforms were essential to restore financial sustainability to the sector while improving access and reliability for households and businesses.
According to the framework, the World Bank’s intervention will support reforms focused on tariff and subsidy frameworks, competitive investment planning and sound sector regulation.
“The WBG will also support reforms to restore financial sustainability, focusing on tariff and subsidy frameworks, competitive investment planning, and sound sector regulation,” the framework said.
The World Bank said Nigeria had the world’s largest electricity access deficit of more than 86 million people without access to electricity.
It projected that its combined off-grid and on-grid interventions under the framework would provide electricity access to more than 32 million Nigerians.
The World Bank said the persistent power outages had forced households and businesses to depend heavily on expensive generators, thereby increasing operating costs and undermining productivity.
It said the financial position of Nigeria’s electricity sector had remained unsustainable with tariff shortfalls estimated at $2.45bn by the end of 2025.
The global institution said its support would include project preparation, transaction structuring and tran he support, it said, would include project preparation, transaction structuring and transparent competitive processes aimed at attracting private investors into the sector.
It also projected that its combined off-grid and on-grid interventions under the framework would provide electricity access to more than 32 million Nigerians.
It noted that persistent power outages had forced households and businesses to depend heavily on expensive generators, thereby increasing operating costs and undermining productivity.
The bank further stated that the financial position of Nigeria’s electricity sector remained unsustainable, with tariff shortfalls estimated at $2.45bn by the end of 2025.
It said its support would facilitate the mobilisation of private capital for renewable energy expansion and grid densification, with the aim of improving the resilience of the power sector while advancing affordability and access.
The World Bank also said it would continue supporting the Nigeria Distributed Access through Renewable Energy Scale-up platform, designed to catalyse private investment in mini-grids and standalone solar systems.
The institution added that it would assist the Federal Government in developing structured public-private partnerships and private investment frameworks across the generation, transmission and distribution segments.
