The African Development Bank Group’s Board of Directors sanctioned a $500 million loan to the Federal Government designed to fund the primary phase of the Economic Governance and Energy Transition Support Program (EGET-SP). The initiative is focused on hastening the overhaul of the nation’s electrical infrastructure and enhancing accessibility to greener energy sources.
The loan will help 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 government launched the energy transition plan in August 2022 and in June 2023, passed a new Electricity Act decentralising the electricity supply industry and setting the stage for increased investments by subnational governments and the private sector.