The African Development Bank (AfDB) has approved a $150 million sovereign loan to the Federal government to finance the Nigeria Electrification Project (NEP).
Rhoda Limbani Mshana, AfDB’s Chief Power Sector Regulations Specialist, PESR, in a statement issued on Monday, said the financing will support rural electrification efforts in Nigeria by facilitating private sector development and rollout of off-grid solutions, as well as the installation of dedicated power systems for Federal Universities.
The Africa Growing Together Fund (AGTF), a $2 billion facility sponsored by the People’s Bank of China and administered by the African Development Bank, has also approved a $50 million Loan to the Nigerian government to co-finance the project.
According to the statement, the joint financing from the Bank and AGTF will support the government’s efforts to address critical energy access deficit in the country and catalyse achievement of universal energy access by 2030 targets.
Amadou Hott, the Bank’s Vice President for Power, Energy, Climate Change and Green Growth, welcomed the Board’s approval of NEP, underscoring the importance of projects that leverage private sector investment into energy access solutions.
Damilola Ogunbiyi, the Managing Director of the Rural Electrification Agency, while speaking on the approval, noted that “We are extremely pleased with the African Development Bank’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 a particular focus on women and young people.”
The Nigeria Electrification Project (NEP)
The NEP, which will be implemented by the Rural Electrification Agency (REA), presents an innovative approach to address the energy access deficit by channelling private sector investments into a commercially viable mini-grid and off-grid solutions.