A statement posted on the website of the bank on Thursday stated that these initiatives would decentralise the electricity supply industry and attract investments from subnational governments and the private sector.

“The Board of Directors of the African Development Bank Group has approved a loan of $500m to the Federal Republic of Nigeria to finance the first phase of the Economic Governance and Energy Transition Support Programme, a new programme aimed at accelerating transformation of the country’s electricity infrastructure and improving access to cleaner sources of energy,” the bank stated.

It also noted that the loan would help close the financing gap in the federal budget for the 2024/25 fiscal year, specifically supporting the implementation of Nigeria’s new Electricity Act and the Nigeria Energy Transition Plan.

Nigeria launched its energy transition plan in August 2022, and in June 2023 it passed the new Electricity Act.

The plan envisions the development of 250 gigawatts of installed electricity capacity by 2050, with 90 per cent of this capacity being renewable.

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