The World Bank has warned that Nigeria must strengthen rules and improve governance to grow its power sector.
This message came on Thursday as the Nigerian Electricity Regulatory Commission (NERC) celebrated its 20th anniversary in Abuja.
The World Bank Country Director for Nigeria, Mathew Verghis, highlighted the scale of the challenge.
World Bank Warns On Power Sector
“Nigeria has the largest electricity access deficit in the world,” he said.
“The regulator must provide fair and transparent service to both consumers and utilities for reforms to succeed.”
Progress In Off-Grid Energy
Despite these challenges, progress exists.
NERC’s forward-looking regulations have encouraged private companies to invest in off-grid renewable energy, bringing electricity to more than 7.8 million Nigerians over the past five years.
Verghis explained that reforms depend on politics and economics.
Nevertheless, NERC has decentralised markets and built local capacity.
However, the sector still needs greater efficiency and financial sustainability to attract more investors.
Although Nigeria possesses abundant energy and a young population, the privatised electricity sector has struggled with inefficiency, high losses, and limited investment since 2013.
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Governance Drives Investment
Managing Director of Infracredit, Chinua Azubuike, stressed that capital follows governance.
“When rules remain predictable, investors gain confidence and costs fall,” he said.
Furthermore, he noted, “Governance builds invisible trust.
The Electricity Act 2023 opens doors, but investors need consistent rules to act.”
He added, “Our work depends on NERC.
Strong regulation comes first, even before financial guarantees.
NERC doesn’t just regulate; it partners to build long-term, investable power markets.”
Finally, Azubuike urged Nigerians to protect domestic investors and mobilise local capital to solve development challenges.
In a sector often defined by shortages, good governance and smart regulation ignite the spark Nigeria needs to light its future.
