AfDB lends USD 500m to Nigeria for energy improvements

The African Development Bank Group (AfDB) today said its board has approved a USD-500-million (EUR 462m) loan to Nigeria to support a programme that seeks to speed up the country’s electricity infrastructure transformation and improve access to cleaner energy.

The loan will finance the first phase of the Economic Governance and Energy Transition Support Programme (EGET-SP). The financing will help close the gap in the 2024/2025 federal budget, facilitating the implementation of Nigeria’s Energy Transition Plan, which was launched in 2022 and calls for the development of 250 GW of installed electricity capacity by 2050, 90% of which will be renewable. By 2030, the plan aims to ensure that most of the population has access to clean cooking, using liquefied petroleum gas (LPG), biogas, biofuels such as ethanol, and electric cookstoves.

The loan will also support the implementation of the new Electricity Act, passed in June 2023, which decentralises the electricity supply industry and provides ground for increased investments by subnational governments and the private sector.

(USD 1 = EUR 0.924)

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