The Federal Government has cancelled $717.7 million in undisbursed World Bank financing for Nigeria’s electricity sector, ending the remaining part of a $1.52 billion power sector recovery programme. The decision comes amid ongoing tariff shortfalls, financial strain in the sector, and persistent challenges in implementing key reforms.

According to documents from the World Bank, the cancellation followed a formal request by the Federal Government and a mutual agreement to discontinue the Power Sector Recovery Performance Based Operation. The bank stated that the entire undisbursed balance would be cancelled, meaning no further disbursements will be made under the programme after approval of the restructuring.

The World Bank also confirmed that the programme’s closing date has been moved forward from June 30, 2027, to May 31, 2026. The facility was part of a broader intervention aimed at improving Nigeria’s struggling power sector, but difficulties in meeting reform targets led to its early termination.