World Bank Confirms It Did Not Refuse a Loan to Nigeria
The World Bank has not refused a loan to Nigeria; instead, the Federal Government of Nigeria and the World Bank have mutually decided to cancel $717.7 million in unutilized funding from a power sector reform initiative. This joint cancellation has ignited a surge of public speculation, with some citizens perceiving it as a denial of a loan or a suspension of the program. The cancellation effectively concludes the undisbursed segment of a $1.52 billion facility that was initially intended for the Power Sector Recovery Performance-Based Operation (PSRO). Nigeria formally requested the cancellation of the unused balance on March 26, 2026. The restructuring of the program was initiated because the project did not achieve essential global indicators and reform milestones. A significant depreciation of the Nigerian Naira has increased the cost of natural gas, which supplies over 70% of Nigeria's national grid, disrupting the program's original financial framework. The progr...