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Nigeria Secures $1.1 Billion AfDB Loan to Provide Electricity for 5 Million People by 2026

Nigeria has secured a $1.1 billion loan from the African Development Bank (AfDB) to expand electricity access to five million people by 2026. The financing is part of the government’s broader efforts to improve energy infrastructure and reduce the country's significant power deficit.



Nigeria, Africa’s most populous country, has long struggled with electricity shortages, with millions of homes and businesses relying on expensive and inefficient alternatives like diesel generators. The AfDB’s loan is expected to fund new power generation projects, expand transmission infrastructure, and support rural electrification programs to ensure that more Nigerians, especially those in underserved areas, have reliable access to electricity.


The African Development Bank has been a strong partner in Nigeria’s energy sector, funding multiple initiatives aimed at addressing the country's power challenges. In recent years, the bank has backed projects that focus on renewable energy, off-grid solutions, and improvements in transmission and distribution networks.


AfDB President Akinwumi Adesina has consistently emphasized the importance of electricity in driving economic growth, job creation, and overall national development. "Access to reliable energy is critical for Nigeria’s industrialization, digital transformation, and improved quality of life," Adesina said in a previous statement on energy investments.



With this new funding, the Nigerian government aims to improve power supply to homes, businesses, and industries, reducing the cost of doing business and boosting productivity. Increased electricity access will also enhance educational opportunities, healthcare services, and job creation.






The initiative aligns with Nigeria’s Energy Transition Plan, which seeks to achieve universal electricity access and promote cleaner energy sources. Officials believe that investing in power infrastructure will help drive economic development, attract investment, and reduce dependence on fossil fuels.

While the funding is a significant milestone, experts stress the need for effective implementation, transparent management, and proper maintenance of power infrastructure to ensure long-term success. The Nigerian government is expected to collaborate with private sector players and international partners to execute the project efficiently.






As the 2026 deadline approaches, all eyes will be on how the funds are utilized and whether this investment can finally bring stable electricity to millions of Nigerians.



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