The Federal Government of Nigeria has successfully secured a $1.1 billion loan from the African Development Bank (AfDB) to expand electricity access to five million people by the end of 2026. This significant financial boost aligns with Nigeria’s ongoing commitment to bridging its energy deficit and improving power supply across the country.
The announcement was made by President Bola Ahmed Tinubu at the recently concluded two-day Mission 300 Africa Energy Summit held in Dar es Salaam, Tanzania. Represented by the Minister of Power, Adebayo Adelabu, President Tinubu underscored the administration’s dedication to ensuring universal energy access for Nigerians.
In a statement released by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, Tinubu acknowledged the vital role of AfDB in financing Nigeria’s energy projects. He revealed that in addition to the $1.1 billion funding, AfDB is also injecting $200 million into the Nigeria Electrification Project, which is expected to provide power to an estimated 500,000 people by the end of 2025.
“This is an ambitious goal, but we can achieve it together. As Nigeria’s President, I am committed to making energy access a top priority,” Tinubu stated, emphasizing the administration’s resolve to tackling the country’s persistent energy challenges.
Additional AfDB Investments to Boost Nigeria’s Energy Sector
Beyond the immediate power expansion initiative, the president highlighted further planned investments by AfDB in Nigeria’s energy infrastructure. Notably, a $1.2 billion investment is being structured under the Desert-to-Power program and the Nigeria-Grid Battery Energy Storage System facility.
“We also look forward to the AfDB’s planned $700 million investment in the Nigeria Desert-to-Power programme and its planned $500 million facility for the Nigeria-Grid Battery Energy Storage System, which will provide electricity for an additional two million people,” Tinubu noted.
Furthermore, the president disclosed that Nigeria has initiated strategic plans to ensure the effective utilization of the World Bank’s $750 million support package. This funding is directed at expanding Nigeria’s distributed energy access through mini-grids and standalone solar systems, ultimately providing power to 16.2 million people.
Acknowledging Global Energy Support
President Tinubu expressed profound appreciation to key stakeholders driving Africa’s energy transformation, including Ajay Banga, President of the World Bank Group, and Akinwunmi Adesina, President of AfDB. He commended their visionary leadership and unwavering commitment to lighting up Africa.
Additionally, he lauded the contributions of the United Nations Sustainable Energy for All, the Rockefeller Foundation, and the Global Energy Alliance for Development in championing efforts toward a sustainable energy future for the continent.
“As we all know, Africa is rich in energy resources, yet millions of our citizens still lack access to reliable and affordable energy. This situation is unacceptable. It is our responsibility to take collective action to change this narrative,” Tinubu stated.
Nigeria’s Push for Sustainable Energy Solutions
The latest funding initiative comes at a time when Nigeria is aggressively pursuing solutions to its long-standing power challenges. The administration has prioritized a multi-pronged approach that includes expanding the national grid, integrating renewable energy sources, and ensuring better energy distribution to underserved communities.
The AfDB-backed projects are expected to contribute significantly to Nigeria’s energy landscape, fostering economic growth, creating jobs, and enhancing the quality of life for millions of citizens. With the strategic deployment of these funds, the Nigerian government aims to not only increase electricity access but also drive industrialization and economic development.
As Nigeria moves towards achieving universal electricity coverage, partnerships with global financial institutions like AfDB and the World Bank remain critical in facilitating infrastructure investments and unlocking new opportunities in the energy sector.
With implementation set to begin immediately, stakeholders across the power and financial sectors will be closely monitoring progress to ensure that the funds are effectively utilized, ultimately fulfilling the government’s promise of delivering reliable power to millions of Nigerians.
