The African Development Bank Group has approved a loan of $500m to the Federal Government to finance the first phase of the Economic Governance and Energy Transition Support Programme (EGET-SP).
EGET-SP is an initiative aimed at accelerating the transformation of the country’s electricity infrastructure and improving access to cleaner sources of energy.
A statement posted on the website of the bank on Thursday stated that these initiatives would decentralise the electricity supply industry and attract investments from subnational governments and the private sector.
“The Board of Directors of the African Development Bank Group has approved a loan of $500m to the Federal Republic of Nigeria to finance the first phase of the Economic Governance and Energy Transition Support Programme, a new programme aimed at accelerating transformation of the country’s electricity infrastructure and improving access to cleaner sources of energy,” the bank stated.
It also noted that the loan would help close the financing gap in the federal budget for the 2024/25 fiscal year, specifically supporting the implementation of Nigeria’s new Electricity Act and the Nigeria Energy Transition Plan.
