The African Development Bank Group (AfDB) has approved a $500 million loan to support Nigeria’s ambitious energy transition plan. The funds will be used to finance the initial phase of the Economic Governance and Energy Transition Support Program (EGET-SP), designed to overhaul the country’s electricity infrastructure and accelerate the shift to cleaner energy sources.
Nigeria aims to generate 250 gigawatts of electricity, primarily from renewable sources, by 2050. The new loan will help bridge a budget gap and support the implementation of the recently enacted Electricity Act, which empowers state governments and private investors to play a more significant role in the power sector.
“This investment is a major step forward in Nigeria’s journey towards energy independence and sustainability. By supporting the EGET-SP, we are helping to create a brighter future for millions of Nigerians,” a press release by APO noted.
The AfDB’s commitment to Nigeria extends beyond this loan, with a total portfolio of approximately $4.4 billion supporting various development initiatives. This investment aligns with the bank’s broader strategy to promote economic growth, reduce poverty, and combat climate change across Africa.