African Development Bank Group Grants $500 Million Loan to Enhance Electricity Access in Nigeria

The African Development Bank Group’s Board of Directors has authorized a $500 million loan to the Federal Republic of Nigeria. This funding will support the first phase of the Economic Governance and Energy Transition Support Program (EGET-SP), designed to advance Nigeria’s electricity infrastructure and enhance access to cleaner energy sources.

The loan aims to bridge the financing gap in Nigeria’s 2024/25 federal budget, specifically aiding the implementation of the newly enacted Electricity Act and the Nigeria Energy Transition Plan. Launched in August 2022 and followed by the passage of the Electricity Act in June 2023, these initiatives seek to decentralize the electricity supply industry and attract increased investments from both local governments and the private sector.

The Nigeria Energy Transition Plan targets the development of 250 GW of installed electricity capacity by 2050, with 90% sourced from renewables. By 2030, it aims to provide clean cooking solutions to the majority of the population through liquefied petroleum gas (LPG), biogas, ethanol, and electric cookstoves.

The EGET-SP will facilitate the upgrade of Nigeria’s electricity infrastructure and accelerate the transition of households and businesses to renewable energy sources. This $500 million support is part of the Bank Group’s broader efforts to promote economic growth, poverty reduction, and climate action in Nigeria.

Aligned with the Bank Group’s Ten-Year Strategy 2024-2033, High 5s priorities, and the New Deal on Energy for Africa, which targets universal access to modern energy by 2030, this initiative underscores the Bank Group’s commitment to Nigeria. As of July 2024, the African Development Bank Group’s active portfolio in Nigeria is valued at approximately $4.4 billion.