The African Development Bank Group’s Board of Directors has approved a $500 million loan to Nigeria to finance the first phase of the Economic Governance and Energy Transition Support Program (EGET-SP).
The initiative aims to accelerate the transformation of Nigeria’s electricity infrastructure and enhance access to cleaner energy sources.
The loan will help address the financing gap in Nigeria’s federal budget for the 2024/25 fiscal year, particularly supporting the implementation of the country’s new Electricity Act and the Nigeria Energy Transition Plan.
Launched in August 2022, the energy transition plan, alongside the Electricity Act passed in June 2023, aims to decentralize the electricity supply industry and attract increased investment from subnational governments and the private sector.
The energy transition plan outlines a vision to achieve 250 GW of installed electricity capacity by 2050, with 90% coming from renewable sources.
It also aims to provide clean cooking solutions to the majority of the population by 2030, utilizing technologies such as liquefied petroleum gas (LPG), biogas, biofuels like ethanol, and electric stoves.
The EGET-SP will support the implementation of these policies by upgrading Nigeria’s electricity infrastructure and accelerating the transition to cleaner and renewable energy sources for millions of households and businesses.
The $500 million support from the Bank Group aligns with its Ten-Year Strategy 2024-2033, High 5s priorities, and the New Deal on Energy for Africa, which seeks to achieve universal access to modern energy by 2030.
As of July 2024, the African Development Bank Group’s active portfolio in Nigeria stands at approximately $4.4 billion.
