FG, World Bank Scrap $717.7 Million Power Sector Loan as Program Fails

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The federal government and the World Bank have agreed to cancel $717.7 million in undisbursed financing under the Power Sector Recovery Performance-Based Operation. The program was built over five years with more than a billion dollars to rescue one of Africa's most dysfunctional electricity markets.

The World Bank agreed to the cancellation on March 26, 2026. The program's closing date, originally set for June 2027, was pulled forward to May 31, 2026. That is more than a year early. Most of the program's ambitions remain unmet.

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