Nigeria Secures $1.1 Billion AfDB Funding to Power 5 Million People by 2026

President Bola Tinubu has confirmed the approval of a $1.1 billion fund from the African Development Bank (AfDB) to provide electricity to 5 million Nigerians by the end of 2026.

In addition, Tinubu highlighted the AfDB’s $200 million Nigeria Electrification Project. This aims to provide electricity to 500,000 people by the end of 2025.

Bayo Onanuga, Special Adviser to the President on Information and Strategy, President, made this known late Tuesday. He said Tinubu’s remarks were delivered by Adebayo Adelabu, Nigeria’s Minister of Power.

Adelabu did this during the two-day Mission 300 Africa Energy Summit in Dar es Salaam, Tanzania. The summit brought together key stakeholders to discuss strategies for achieving universal energy access across the continent.

“I acknowledged AfDB’s $1.1 billion, expected to provide electricity for 5 million people by the end of 2026. While its $200 million in the Nigeria Electrification Project will provide electricity for 500,000 people by the end of 2025.

“This is an ambitious goal, but we can achieve it together,” Tinubu said. “As Nigeria’s President, I am committed to making energy access a top priority.”

The AfDB’s commitment to Nigeria’s energy sector was first announced in May 2024 by Kevin Kariuki, Vice President for Power, Energy, Climate Change, and Green Growth. Speaking at the Eighth Africa Energy MarketPlace (AEMP) Forum in Abuja, Kariuki revealed plans for a $1 billion policy-based operation to support Nigeria’s power sector reforms under the new Electricity Act.

Kariuki further detailed the AfDB’s plans to finance the construction of 500 kilometres of transmission lines and four substations with a capacity exceeding 1,000 Mega Volt Amperes (MVA). These infrastructure projects are critical to enhancing Nigeria’s electricity grid and ensuring sustainable energy distribution.

President Tinubu also expressed optimism about the AfDB’s planned $1.2 billion AfDB investment in the Nigeria Desert to Power programme and facility for the Nigeria-Grid Battery Energy Storage System. This includes $700 million for the Desert to Power initiative and $500 million for the battery storage system, which is expected to provide electricity to an additional 2 million Nigerians.

In addition to AfDB’s contributions, President Tinubu outlined plans to utilise the World Bank’s $750 million funding to expand distributed energy access through mini-grids and standalone solar systems. This initiative aims to provide power to 16.2 million people, further advancing Nigeria’s renewable energy goals.

“As we all know, Africa is rich in energy resources, yet millions of our citizens still lack access to reliable and affordable energy,”,” Tinubu said. “This situation is unacceptable. It is our responsibility to take collective action to change this narrative.”

12 African Nations Commit to Universal Energy Access

Following the summit, leaders from Nigeria, Chad, Côte d’Ivoire, the Democratic Republic of the Congo, Liberia, Madagascar, Malawi, Mauritania, Niger, Senegal, Tanzania, and Zambia signed a declaration committing to ensuring electricity access for their citizens within the next five years.

The 12 nations plan to achieve this goal through National Energy Compacts, which outline specific policy measures to address energy sector challenges and set tailored targets based on each country’s unique context. This collaborative approach aims to accelerate progress towards universal energy access and sustainable development across Africa.

By leveraging international partnerships and strategic investments, Nigeria and its African counterparts are poised to transform their energy sectors, driving economic growth and improving the quality of life for millions of citizens.