Nigeria has cancelled the proposed $717.7 million loan under the World Bank-backed Power Sector Recovery Performance-Based Operation (PSRO).

The decision comes at a time when the nation is facing challenges in the electricity sector amid rising tariff deficits, foreign exchange pressures, and persistent operational inefficiencies.

In a World Bank restructuring paper, the Federal Government made a formal request for the cancellation on March 26, 2026.

The document read, “The restructuring will result in the cancellation of the entire undisbursed balance in the amount of $717.7 million equivalent, and no further disbursements will be made under the Program following approval of this restructuring. 

“The restructuring includes an advancement of the Program closing date from June 30, 2027, to May 31, 2026, to reflect the cancellation and completion of disbursement activities, after which the operation will proceed toward closure in accordance with World Bank procedures.”