The loan will address a funding shortfall in Nigeria's 2024/25 federal budget, specifically aiding the implementation of the newly enacted Electricity Act and the Nigeria Energy Transition Plan. The Energy Transition Plan, launched in August 2022, and the Electricity Act, passed in June 2023, are key to decentralising the electricity sector and attracting investments from subnational governments and the private sector.
By 2050, Nigeria plans to achieve a 250GW installed electricity capacity, significantly advancing the country's energy transformation goals.
The energy transition plan envisions the development, by 2050, of 250 GW of installed electricity capacity, 90% of which will be renewable. It will provide clean cooking access to the bulk of the population by 2030, using liquefied petroleum gas (LPG), biogas, biofuels like ethanol, and electric cookstoves.
The Economic Governance and Energy Transition Support Program will also support the implementation of these policies, helping deliver much-needed upgrades of Nigeria’s electricity infrastructure, and fast-tracking the country’s efforts to transition millions of households and businesses to cleaner and renewable sources of energy.
The Bank Group’s $500m 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.
The Economic Governance and Energy Transition Support Program (EGET-SP) is in line with the Bank Group's new Ten-Year Strategy 2024-2033 (https://apo-opa.co/3WJPu3E), its High 5s (https://apo-opa.co/3LNIMDu) priorities, and the New Deal on Energy for Africa (https://apo-opa.co/3SyFTKx) which seeks to achieve universal access to modern energy by 2030.
As of July 2024, the African Development Bank Group’s active portfolio in Nigeria is valued at about $4.4 billion.
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