Nigeria is getting a loan of $500 million from the African Development Bank Group.
The Group announced yesterday, that the loan is to be used for the implementation of the Nigeria Energy Transition Plan.
The country’s new Electricity Act has decentralized the electricity supply industry and sets the stage for increased investments by subnational governments and the private sector.
The loan is expected to close the financing gap of the Federal Budget in the 2024/25 fiscal year, specifically supporting the implementation of the country’s new Electricity Act and the Nigeria Energy Transition Plan.
The energy transition plan envisions the development of 250 GW of installed electricity capacity by 2050.
This is some 90% of renewable and access to cleancooking.
According to researchgate, Nigeria’s energy mix is made up of traditional solid biomass and waste (74%), oil (13%), natural gas (12%) and hydro (1%).
The country’s electricity grid partially collapsed this week, plunging several cities in darkness, this after the country’s Minister of Power, Chief Adebayo Adelabu, announced 2 months ago, the planned addition of between 10,000 – 12,000 Megawatts to the grid, in the next 3 years.