The African Development Bank Group has approved a $500 million loan to the Federal Government of Nigeria to finance the first phase of the Economic Governance and Energy Transition Support Programme (EGET-SP).
This initiative aims to transform Nigeria’s electricity infrastructure and enhance access to cleaner energy sources.
The programme will decentralize the electricity supply industry and attract investments from subnational governments and the private sector.
The loan will help close the federal budget financing gap for the 2024/25 fiscal year and support the implementation of Nigeria’s new Electricity Act and Energy Transition Plan.
Launched in August 2022, Nigeria’s energy transition plan envisions developing 250 gigawatts of installed electricity capacity by 2050, with 90% of this capacity being renewable.
By 2030, it aims to provide clean cooking solutions to the majority of the population using liquefied petroleum gas, biogas, biofuels, and electric cookstoves.
The EGET-SP will upgrade Nigeria’s electricity infrastructure and accelerate the transition to renewable energy sources for millions of households and businesses.
The African Development Bank Group’s $500 million support is part of broader initiatives to bolster Nigeria’s economic growth, poverty reduction, and climate action efforts.
As of July 2024, the bank’s active portfolio in Nigeria is valued at $4.4 billion.
Punch