The $500 million loan approved by the African Development Bank Group would increase Nigeria’s access to power.
The Federal Republic of Nigeria has been granted a $500 million loan by the Board of Directors of the African Development Bank Group to fund the initial phase of the Economic Governance and Energy Transition Support Program (EGET-SP). This new program aims to improve access to cleaner energy sources and accelerate the transformation of the nation’s electricity infrastructure.
The Nigerian government initiated the energy transformation plan in August 2022 and enacted a new Electricity Act in June 2023, which decentralized the industry and paved the way for larger investments from the private sector and subnational governments.
According to the energy transition plan, 250 GW of installed power capacity—90% of which will be renewable—will be developed by 2050. By 2030, the majority of people will have access to clean cooking through the use of electric cookstoves, biogas, liquefied petroleum gas (LPG), and biofuels like ethanol.
In addition to aiding in the much-needed upgrades of Nigeria’s electrical infrastructure, the Economic Governance and Energy Transition Support Program will expedite the nation’s efforts to shift millions of homes and businesses to cleaner and renewable energy sources.
The Bank Group’s $500 million contribution to the Federal Government of Nigeria is the most recent in a line of programs meant to aid in the nation’s efforts to combat climate change, reduce poverty, and promote economic growth.
The Bank Group’s new Ten-Year Strategy 2024–2033, its High 5s priorities, and the New Deal on Energy for Africa, which aims to provide universal access to modern energy by 2030, are all aligned with the Economic Governance and Energy Transition Support Program (EGET-SP).
The active portfolio of the African Development Bank Group in Nigeria as of July 2024 is estimated to be worth $4.4 billion.
