Nigeria is set to receive a loan of US $500M from the African Development Bank Group (AfDB) to boost the first phase of the Economic Governance and Energy Transition Support Program (EGET-SP).
EGET-SP aims to transform Nigeria’s electricity infrastructure and improve access to cleaner energy sources, addressing a crucial financing gap in the Federal Budget for the 2024/25 fiscal year. The loan will facilitate the implementation of Nigeria’s new Electricity Act and the Nigeria Energy Transition Plan.
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EGET-SP
The program will deliver essential upgrades to Nigeria’s electricity infrastructure, decentralizing the electricity supply industry and attracting investments from subnational governments and the private sector.
EGET-SP aims to accelerate the transition to cleaner, renewable energy sources, with Nigeria’s energy transition plan targeting 250 GW of installed electricity capacity by 2050, of which 90% will be renewable.
By 2030, the program aims to provide clean cooking solutions to the majority of the population using liquefied petroleum gas (LPG), biogas, biofuels like ethanol, and electric cookstoves.
These initiatives align with the AfDB’s new Ten-Year Strategy (2024-2033), its High 5s priorities, and the New Deal on Energy for Africa, which aims for universal access to modern energy by 2030. As of July 2024, the AfDB’s active portfolio in Nigeria is valued at approximately US $4.4bn. This strategic support from the AfDB will play a pivotal role in Nigeria’s journey towards a more sustainable and efficient energy future.
