The African Development Bank (AfDB) has disbursed $500 million to support Nigeria's energy transition programme, a significant step toward addressing the country's persistent electricity challenges.
Dr. Abdul Kamara, Director-General of the AfDB Nigeria Country Department, revealed this development during an event on Wednesday, explaining that the funds represent half of the bank's $1 billion Economic Governance and Energy Transition Support Programme.
"Through our $1 billion Economic Governance and Energy Transition Support Programme, we are helping Nigeria advance critical power sector reforms. Five hundred million dollars has already been disbursed, with the second phase on track," Dr. Kamara stated.
The AfDB official also disclosed that an additional $1.2 million grant has been earmarked to support the feasibility study of the Battery Energy Storage System (BESS), which could potentially revolutionize energy storage capabilities in Nigeria.
Furthermore, under AfDB's $1 million grant for the Africa Energy Sector Technical Assistance Programme, the bank is supporting the implementation of the Electricity Act, building state-level electricity markets, and strengthening governance in the sector.
This financial intervention comes at a critical time as Nigeria continues to grapple with severe electricity challenges affecting its population of over 250 million people. The inadequate power supply has been identified as a major obstacle to economic growth and industrial development in Africa's most populous nation.
Bismarck Rewane, Chief Executive Officer of Financial Derivatives and a respected economic expert, emphasized the importance of reliable electricity for Nigeria's economic advancement, stating that "Nigeria cannot grow economically without an adequate power supply."
The AfDB's support aligns with Nigeria's broader energy transition goals, which aim to increase access to electricity while gradually shifting toward more sustainable and renewable energy sources to meet the country's growing energy demands.
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