The Board of Directors of the African Development Bank Group (AfDB) has approved a loan of $500 million to the Federal Republic of Nigeria.
The AfDB loan is aimed at financing the first phase of the Economic Governance and Energy Transition SupÂport Program (EGET-SP), a new programme aimed at accelerating transformation of the country’s electricity inÂfrastructure and improving access to cleaner sources of energy.
It will 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.
The Nigerian government launched the energy transiÂtion plan in August 2022, and in June 2023, passed a new Electricity Act decentralizÂing the electricity supply inÂdustry and setting the stage for increased investments by subnational governments and the private sector.
The energy transition plan envisions the developÂment, by 2050, of 250 GW of installed electricity capacity, 90% of which will be renewÂable.
It will provide clean cookÂing access to the bulk of the population by 2030, using liqÂuefied petroleum gas (LPG), biogas, biofuels like ethanol, and electric cookstoves.
The Economic GoverÂnance and Energy Transition Support Programme will also support the implementation of these policies, helping deÂliver much-needed upgrades of Nigeria’s electricity infraÂstructure, and fast-tracking the country’s efforts to tranÂsition millions of households and businesses to cleaner and renewable sources of energy.
The Bank Group’s $500m support to the Federal GovÂernment of Nigeria is the latest in a series of initiaÂtives aimed at supporting the country’s economic growth, poverty reduction, and cliÂmate action efforts.
The Economic GoverÂnance and Energy Transition Support Program (EGET-SP) is in line with the Bank Group’s new Ten-Year StratÂegy 2024-2033.
