Key Takeaways
- World Bank-funded electricity projects in Nigeria face criticism for delays and poor execution
- Stakeholders demand increased transparency to ensure value for money and improved power supply
- Over $20 billion has been borrowed as World Bank loans for the Nigerian electricity ecosystem without commensurate value
There are growing concerns over the implementation and effectiveness of World Bank-funded electricity projects in Nigeria, with stakeholders frowning at delays, poor execution, and rising debt and other hiccups. The projects aim to increase electricity access, improve reliability, support renewable energy, attract private investors, and reform the sector so Nigerians spend less time in blackout and less resources on alternative energy generation.
Despite the demand for improved power supply in the country, many Nigerians say the progress on the projects has been at snail speed and outcomes remain below expectations. Observers emphasize the need for increased transparency to ensure the projects deliver improved power supply and value for money, rather than adding to the country’s debt burden.
World Bank Funding And Project Outcomes
President of the Nigeria Consumer Protection Network, Kunle Olubiyo, noted that not less than $20 billion has been borrowed as World Bank loans before and after privatisation and channelled to the Nigerian electricity ecosystem, without commensurate value for money/resources. The Nigerian Electricity Sector Performance Improvement Plan in the last 15 years of the Transmission Company of Nigeria has been lifted with funding from the World Bank, African Development Bank (AfDB), Central Bank of Nigeria (CBN), and other Development Finance Institutions.
Stakeholders expressed mixed reactions over the value of World Bank power projects. Some said the projects have delivered improvements in infrastructure, network modernization, metering, and institutional reforms. However, others raised concerns over the long-term performance of some imported meters and equipment that failed before their warranty period.
Challenges And Recommendations
Observers also alleged that the Presidential Power Initiative, Power Sector Recovery Programme, and other World Bank projects were designed without proper needs assessment or input from Discos, TCN, and Gencos. Olubiyo noted that several World Bank-funded intervention projects have started failing, including World Bank-funded poles mounted meters in Kano, Abuja, and Karu.
Uket Ubonga, Executive Secretary, Power and Consumers Advocates Network (PECAN), an Energy And Consumer Advocacy Group, said, “The only thing that has come out of the various interactions with the World Bank is the ongoing DISREP metering programme.” Olubiyo advised the World Bank Nigeria Country Office to align with local content, prevent dumping of finished products, and raise KPI benchmarks.
Why This Matters
The success of World Bank-funded electricity projects in Nigeria is crucial for the country's economic development and improved living standards. Ensuring transparency, accountability, and value for money is essential to achieve the desired outcomes and avoid adding to the country's debt burden.