Nigeria has cancelled $717.7 million in undisbursed funding under the World Bank-backed Power Sector Recovery Performance-Based Operation (PSRO), dealing a blow to ongoing efforts to improve the financial stability of the country’s electricity sector.
The development comes as the sector continues to face challenges including tariff shortfalls, foreign exchange constraints and operational inefficiencies.
According to a World Bank restructuring paper obtained by Nairametrics on Tuesday, the cancellation followed a formal request by the Federal Government on March 26, 2026. The decision was reached jointly by Nigeria and the World Bank, with both parties agreeing to discontinue financing under the programme and channel support through other interventions.
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The restructuring document stated that the undisbursed balance of $717.7 million would be cancelled in full. It also noted that the programme’s closing date had been moved forward by more than a year, from June 30, 2027, to May 31, 2026.
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