The African Development Bank Group (AfDB) has approved a fresh $500 million loan to boost electricity access in Nigeria.
In a statement issued on Thursday, the AfDB said the loan would finance the first phase of the Economic Governance and Energy Transition Support Program (EGET-SP), a new programme aimed at accelerating transformation of the country’s electricity infrastructure and improving access to cleaner sources of energy in the country.
It will also help close the financing gap in the budget for 2024/25 fiscal year, specifically supporting the implementation of Nigeria’s new Electricity Act and the Nigeria Energy Transition Plan.
The statement read: “These initiatives are designed to decentralize the electricity supply industry and attract investments from subnational governments and the private sector.”
“Nigeria launched its energy transition plan in August 2022, and in June 2023, passed the new Electricity Act. The plan envisions the development of 250 GW of installed electricity capacity by 2050, with 90% of this capacity being renewable.”
“The energy transition plan envisions the development, by 2050, of 250 GW of installed electricity capacity, 90% of which will be renewable. It will provide clean cooking access to the bulk of the population by 2030, using liquefied petroleum gas (LPG), biogas, biofuels like ethanol, and electric cook stoves.”
“The Economic Governance and Energy Transition Support Program will also support the implementation of these policies, helping deliver much-needed upgrades of Nigeria’s electricity infrastructure, and fast-tracking the country’s efforts to transition millions of households and businesses to cleaner and renewable sources of energy.”
“The Bank Group’s $500m support to the Federal Government of Nigeria is the latest in a series of initiatives aimed at supporting the country’s economic growth, poverty reduction, and climate action efforts.”
