Labour groups say continental electrification strategy risks repeating failed past schemes as World Bank clarifies $500m Nigeria power support amid funding cuts
A1NEWS International / May 29, 2026
Brazzaville / Abuja —A growing dispute has emerged over Africa’s electricity future as major labour unions across the continent have rejected the African Development Bank (AfDB) and World Bank-backed “Mission 300” initiative, warning that the programme could deepen sovereign debt burdens without delivering reliable electricity access to millions.
The backlash comes as the World Bank simultaneously clarified its continued involvement in Nigeria’s power sector, following the cancellation of $717 million in undisbursed funds tied to a major electricity reform facility.
UNIONS RAISE ALARM OVER “MISSION 300” MODEL
Labour organisations under the International Trade Union Confederation (ITUC-Africa), Public Services International (PSI), and IndustriALL Global Union have strongly criticised the initiative, describing it as a continuation of what they termed “failed neoliberal electrification policies.”
The unions, representing energy sector workers across Africa—including affiliates of the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC)—issued a joint statement at the 2026 AfDB Annual Meetings in Brazzaville, Republic of Congo.
They argued that despite decades of international financing, more than 600 million Africans still lack electricity access.
“FAILED PROMISES” AND DEBT CONCERNS
According to the unions, Mission 300 mirrors earlier initiatives such as the AfDB’s “New Deal on Energy for Africa,” which promised near-universal electricity access by 2025 but failed to achieve its targets.
They warned that the current strategy, which relies heavily on private-sector participation and government-backed risk guarantees, could worsen fiscal vulnerabilities across already indebted African economies.
The groups also criticised proposals requiring governments to ensure “100% operational cost recovery” for electricity utilities, arguing that such policies often lead to tariff hikes and weakened public infrastructure.
Union leaders further cautioned that shifting financial risks to public institutions while incentivising private investors creates an imbalance that undermines long-term energy access goals.
CALL FOR PUBLIC UTILITY REVIVAL STRATEGY
The coalition urged African governments, the AfDB, and the World Bank to abandon what it described as a “market-first electrification model” and instead adopt a “Reclaim and Restore” approach.
This alternative framework, they said, would prioritise rebuilding state-owned electricity utilities, strengthening grid infrastructure, and expanding public investment rather than relying on private capital inflows.
They argued that current reforms risk weakening public utilities to the point of operational collapse without guaranteeing private sector replacement.
WORLD BANK CLARIFIES NIGERIA POWER PROGRAMMES
Amid the debate, the World Bank moved to clarify its position on Nigeria’s electricity sector after confirming the cancellation of $717 million in undisbursed funds linked to the Power Sector Recovery Programme (PSRP).
The Bank stressed that the decision followed a joint review with Nigerian authorities and reflected implementation challenges and evolving sector conditions—not a withdrawal of support.
Despite the cancellation, officials confirmed continued backing for key Nigerian electricity initiatives, including:
- Nigeria Electricity Transmission Project
- Distribution Sector Recovery Programme (DISREP)
- Nigeria Distributed Access through Renewable Energy Scale-Up (DARES)
These programmes focus on grid expansion, metering improvements, and off-grid renewable energy access.
DISREP PROGRAMME CONTINUES AMID FUNDING SHIFT
The World Bank also confirmed that the $500 million DISREP programme remains active, despite concerns that the PSRP cancellation might affect related interventions.
The initiative is designed to improve the financial viability and operational efficiency of Nigeria’s electricity distribution companies through infrastructure upgrades and billing reforms.
Officials noted that although a portion of PSRP funding was cancelled, most of the project—estimated at over 95% execution—had already been implemented.
SECTOR PERFORMANCE GAINS AND CHALLENGES
According to World Bank data, earlier phases of the reform programme contributed to improved revenue collection among electricity distribution companies and better payment flows to the Nigerian Bulk Electricity Trading company.
However, analysts note that systemic challenges—including tariff disputes, grid instability, and liquidity constraints—continue to undermine sector performance.
ANALYSIS: CLASH OVER AFRICA’S ENERGY FUTURE
The unfolding disagreement highlights a deeper ideological divide between labour movements and international financial institutions over how Africa’s electricity deficit should be addressed.
While lenders argue that blended financing and private investment are essential to closing infrastructure gaps, unions insist that over-reliance on market mechanisms risks repeating past failures and worsening inequality in energy access.
As Africa pushes toward universal electricity access, the confrontation over “Mission 300” signals a broader struggle over ownership, financing models, and long-term sustainability of the continent’s energy systems. With Nigeria at the centre of ongoing reforms, the outcome of this policy clash could shape electricity access strategies across the region for years to come.
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