Pan-African finance institution the African Development Bank (AfDB) approved a $500 million loan to support the first phase of Nigeria’s Economic Governance and Energy Transition Support Program (EGET-SP).
The program aims to transform Nigeria’s electricity infrastructure and enhance renewable energy deployment. The plan also falls in line with the country’s Nigeria Energy Transition Plan of 2022 and the Electricity Act of 2023.
To bolster energy security, Nigeria envisions the deployment of 250 GW of new electricity capacity by 2050, with 90% coming from renewables. The country also seeks to improve consumer access to clean cooking by 2030, utilizing liquefied petroleum gas, biogas, biofuels and electric cookstoves.
The AfDB loan will help the government close the financing gap in its 2024/25 budget, pave the way for private sector investments in the energy sector, stimulate economic growth and reduce poverty.
