Nigeria has secured a $150m loan from the African Development Bank (ADB) and a $50m loan from the Africa Growing Together Fund (AGTF) for its Nigeria Electrification Project (NEP), to boost investment and universal energy access.
The loans will help the country in its rural electrification efforts by facilitating private sector development and implementation of off-grid solutions, as well as the installation of power systems for federal universities.
The joint financing will help Nigeria’s efforts to address the energy access deficit, and catalyse achievement of universal energy access by 2030 targets.
To be implemented by Rural Electrification Agency, NEP will help channelize private sector investments into commercially viable mini-grid and off-grid solutions.
ADB vice-president for Power, Energy, Climate Change and Green Growth, Amadou Hott said: “Given the limited amount of public financing available, projects that catalyse private sector investment are critical in enabling the ADB and its regional member countries meet their shared objective of electrifying the continent within the next decade.”
The NEP project is aligned with the ADB’s New Deal on Energy for Africa, the High-5 priorities, as well as the Climate Change Action Plan.
The project is also aligned with the Nigeria’s rural electrification strategy and implementation plan, and the power sector recovery programme, which aims to boost private investments into the energy sector.
“We are extremely pleased with the ADB’s decision to support NEP. By supporting the electrification of unconnected and underserved communities, NEP will contribute materially to their economic development.”
One aim of the NEP is to boost private sector investment in the off-grid sector, as a measure to boost universal energy access across the country.
Rural Electrification Agency managing director Damilola Ogunbiyi said: “We are extremely pleased with the ADB’s decision to support NEP. By supporting the electrification of unconnected and underserved communities, NEP will contribute materially to their economic development.
“Access to reliable, affordable and clean electricity will result in savings for households and businesses, which can be deployed to other uses. NEP will also train and employ thousands of Nigerians with particular focus on women and young people.”