The African Development Bank (AfDB) has approved a loan of $144.27 million to support Nigerโs efforts to strengthen its energy sector and improve economic governance. The funding will facilitate the first phase of Nigerโs Energy Sector Governance and Competitiveness Support Program, designed to tackle the countryโs electricity shortage while enhancing financial and institutional frameworks.
The program aims to increase electricity access nationwideโfrom the current 22.5% to 30% by 2026โand expand manufacturingโs share of GDP from 2.5% to 3.8%. A key priority includes developing renewable energy, particularly solar, with plans to install 240 MW by 2030 and 50 MW by the end of 2026.
โThis initiative reinforces our commitment to Nigerโs energy transition and inclusive development,โ said Lamin Barrow, AfDBโs Director General for West Africa. โImproving energy access and governance will lay the foundation for long-term, sustainable growth.โ
In addition to energy reforms, the program will enhance tax revenue systems, support public-private dialogue, and foster industrial policies that benefit local businesses. It will also clear domestic arrears and strengthen public financial management.
The project includes a strong social inclusion component, with targeted support for over 507,000 internally displaced persons, women, and youth affected by regional insecurity. In rural Nigerโhome to 80% of the populationโonly 4.5% currently have electricity access, with 94% relying on biomass.
Backed by Nigerโs strategic energy compact, the initiative is expected to attract $527 million in private sector investment by 2030 and accelerate rural electrification through policy updates and mini-grid development.
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