The African Development Bank Group has Approved the sum of $500 Million Loan to Boost Electricity Access in Nigeria.
According to the bank, new program to support the development of 250GW of installed electricity capacity by 2050 Access Multimedia Content
According to the Board of Directors of the Bank Group who stated that the $500m loan to the Federal Republic of Nigeria is meant to finance the first phase of the Economic Governance and Energy Transition Support Program emphasized the need for a new program aimed at accelerating transformation of the country’s electricity infrastructure and improving access to cleaner sources of energy.
The loan will equally help close the financing gap of the Federal Budget in the 2024/25 fiscal year, specifically supporting the implementation of the country’s new Electricity Act and the Nigeria Energy Transition Plan.
Recall that the Nigerian government launched the energy transition plan in August 2022, and in June 2023, passed a new Electricity Act decentralizing the electricity supply industry and setting the stage for increased investments by subnational governments and the private sector.
The energy transition plan has envisioned 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 cooking stoves.
It’s expected that 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.
Meanwhile, 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
