- AfDB will invest $1 billion in Nigeria’s power sector reforms.
- Funds will be used to back the National Integrated Electricity Policy and Plan.
- Initiatives include Battery Energy Storage Systems and the Desert to Power solar project.
The African Development Bank (AfDB) plans to invest $1 billion to boost Nigeria’s power sector. On Thursday, May 16, 2024, Dr Kevin Kariuki, AfDB Vice President, announced this at Abuja’s Eighth Africa Energy MarketPlace (AEMP) Forum.
The forum, organised by AfDB, the Ministry of Power, and the UK Nigeria Infrastructure Advisory Facility (UKNIAF), focused on Nigeria’s sustainable energy future.
“We will seek board approval for a $1 billion policy-based operation focused on energy,” Kariuki said. “This supports power sector reforms under the new Electricity Act. The timing of the AEMP and this lending align intentionally. We will fund policies to achieve the National Integrated Electricity Policy and Strategic Implementation Plan (NIEP-SIP).”
Kariuki emphasised that good policies attract investments and enhance current projects, like the $256.2 million Nigeria Transmission Expansion Project. This project includes 500 kilometres of transmission lines and four substations with over 1,000 megavolts (MVA).
AfDB also funds a study for the Transmission Company of Nigeria to explore Battery Energy Storage Systems. This will improve grid stability and integrate renewable energy.
“Nigeria participates in our $20 billion Desert to Power Initiative. Aiming to generate 10,000 Megawatts (MW) of solar power in the Sahel, providing electricity to 250 million Africans,” Kariuki added.
Power Minister Adebayo Adelabu stated that the NIEP-SIP would serve as a blueprint for Nigeria’s energy development. Due to the 2023 Electricity Act requirements. The Act mandates that the Ministry of Power draft the NIEP-SIP within one year.
“The NIEP-SIP will address rural electrification and public-private partnerships for universal access,” Adelabu said. “We develop the NIEP-SIP to tackle industry challenges and seize opportunities identified in a December retreat.”
Adelabu expressed confidence that the AEMP collaboration will help meet the Electricity Act’s goals.
Furthermore, Lamin Barrow, AfDB Nigeria Director-General, noted the event’s timeliness. Which is due to the new Electricity Act rollout. Barrow praised the forum’s technical sessions, which provided vital recommendations on issues like recapitalising the Nigerian Electricity Supply Industry. Reforming the National Wholesale Electricity Market.
“We commend the experts and urge participants to share insights to shape the Eighth AEMP action plan,” Barrow said.
AfDB’s commitment and the AEMP Forum’s discussions aim to drive significant progress in Nigeria’s power sector. This is for a sustainable energy future.