The Board of Directors of African Development Bank (AfDB) Group has sanctioned a USD500 million loan to the Federal Republic of Nigeria, to finance the first phase of the Economic Governance and Energy Transition Support Program.
The country has been facing multiple power outages, grid collapses, and transmission system constraints. Even post privatisation of generation and distribution companies, the grid had collapsed more than 140 times. Thus, this programme aims to accelerate Nigeria’s electricity infrastructure along with easier accessibility to cleaner energy sources. The loan would also wedge the financing gap of the Federal Budget in the 2024-25 fiscal year and support implementation of the new Electricity Act and the Nigeria Energy Transition Plan.