The African Development Bank Group (AfDB) has approved a fresh loan of $500 million to the Federal Republic of Nigeria to boost electricity access in the country.
This will finance the first phase of the Economic Governance and Energy Transition Support Program (EGET-SP), a new program aimed at accelerating transformation of the country’s electricity infrastructure and improving access to cleaner sources of energy.
This is according to a statement from the bank released recently.
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The funding will finance the first phase of the Economic Governance and Energy Transition Support Program (EGET-SP), aimed at transforming the country’s electricity infrastructure and improving access to cleaner energy sources.
The statement also noted that the loan will help close the financing gap in the Federal Budget for the 2024/25 fiscal year, specifically supporting the implementation of Nigeria’s new Electricity Act and the Nigeria Energy Transition Plan.
“These initiatives are designed to decentralize the electricity supply industry and attract investments from subnational governments and the private sector.
“Nigeria launched its energy transition plan in August 2022, and in June 2023, passed the new Electricity Act. The plan envisions the development of 250 GW of installed electricity capacity by 2050, with 90% of this capacity being renewable.
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“The energy transition plan envisions 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 cookstoves.
“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.
“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 efforts” the statement reads.
