AfDB approves $500 million loan to improve electricity access in Nigeria

The African Development Bank (AfDB) Group has approved a new loan of $500 million to improve electricity access in Nigeria.

In a statement issued on Thursday, the AfDB said the loan will finance the first phase of the Economic Governance and Energy Transition Support Program (EGET-SP), a new program aimed at accelerating the transformation of the country’s electricity infrastructure and increasing access to cleaner energy sources in the country.

It will also help close the financing gap in the budget for the 2024/25 fiscal year, particularly supporting the implementation of the new Nigerian Electricity Act and the Nigerian Energy Transition Plan.

The statement read: “This initiative is designed to decentralize the electricity supply industry and attract investment from local governments and the private sector.

“Nigeria launched its energy transition plan in August 2022, and in June 2023, passed a new Electricity Act. The plan envisages the development of an installed electricity capacity of 250 GW by 2050, with 90% of this capacity coming from renewable energy.

“The energy transition plan envisages the development of an installed electricity capacity of 250 GW by 2050, 90% of which will be renewable energy. It will provide access to clean cooking for the majority of the population by 2030, using liquefied petroleum gas (LPG), biogas, biofuels such as ethanol, and electric stoves.

“The Economic Governance and Energy Transition Support Programme will also support the implementation of this policy, helping to deliver much-needed electricity infrastructure improvements in Nigeria, and accelerating the country’s efforts to transition millions of households and businesses to cleaner, renewable energy sources.

“The Bank Group’s $500 million 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.”

By: Babajide Okeowo

AfDB approves $500 million loan to boost electricity access in Nigeria first appeared on Latest Nigeria News | Headlines from Ripples Nigeria.