The African Development Bank (AfDB) has approved a $500 million loan to support Nigeria’s economic governance and energy transition. The loan will finance the first phase of the Economic Governance and Energy Transition Support Programme (EGET-SP), aimed at transforming Nigeria’s electricity infrastructure and promoting cleaner energy sources.
Nigeria launched its energy transition plan in August 2022, targeting universal energy access by 2030 and a carbon-neutral economy by 2060. The plan seeks to address energy poverty, climate change, and achieve Sustainable Development Goal 7 (SDG7) by 2030 and net zero by 2060.
The AfDB loan will help bridge the financing gap in Nigeria’s 2024/2025 budget, supporting the implementation of the new Electricity Act and the energy transition plan. The plan envisions 250 GW of installed electricity capacity by 2050, with 90% from renewable sources, and aims to provide clean cooking access to the majority of the population by 2030.
The EGET-SP aligns with AfDB’s 10-year strategy (2024-2033) and its High 5 priorities, as well as the New Deal on Energy for Africa, which targets universal access to modern energy by 2030. As of July 2024, AfDB’s active portfolio in Nigeria is valued at approximately $4.4 billion.”
