The African Development Bank (AfDB) has provided a $500 million disbursement to Nigeria as the initial phase of its Economic Governance and Energy Transition Support Programme (EGET-SP). This funding aims to fast-track the modernization of Nigeria’s electricity infrastructure and broaden access to clean, renewable energy. The initiative supports Nigeria’s Electricity Act and the Energy Transition Plan, which targets 250 GW electricity capacity by 2050 90% from renewables and expanding clean cooking options with LPG, biogas, biofuels, and electric cookstoves by 2030.
AfDB’s loan is part of a larger $1 billion effort to promote economic growth, climate action, and poverty alleviation in Nigeria, including grants for feasibility studies on battery storage and electricity market reforms at state levels. This support helps close Nigeria’s federal budget gap for 2024/25 and underpins the government’s drive for decarbonization and improved electricity access nationwide.
The Energy Transition Plan, launched in August 2022, alongside the Electricity Act passed in June 2023, aims to decentralize electricity supply and attract investment from subnational and private sectors to create a sustainable power sector.
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