|By Adejumo Adekunle
…Second phase of $1bn support programme underway
…$1.2m grant to drive feasibility for battery storage system
The African Development Bank (AfDB) has disbursed fresh funds to accelerate Nigeria’s ongoing energy transition and economic reform efforts.
The Director-General of the AfDB Nigeria Country Department, Dr Abdul Kamara, made the disclosure on Wednesday during an event in Abuja.
Kamara stated that the disbursement is part of the second phase of the bank’s $1 billion Economic Governance and Energy Transition Support Programme, which targets urgent reforms in the country’s power sector. Already, $500 million has been released under the first phase, with the remainder now progressing toward implementation.
He also revealed that the bank has allocated a $1.2 million grant for the feasibility study of a Battery Energy Storage System (BESS) — a move expected to enhance Nigeria’s capacity to store renewable energy and improve grid stability.
“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,” Kamara said.
He further noted that under the AfDB’s $1 million grant for the Africa Energy Sector Technical Assistance Programme, the bank is also backing the implementation of the Electricity Act, helping to develop state-level electricity markets and strengthen energy sector governance.
The intervention comes at a time when Nigeria’s electricity supply crisis continues to stall economic growth. With a population of over 250 million people, inconsistent power supply remains a major hurdle to development and industrial expansion.
Economic analyst and Chief Executive Officer of Financial Derivatives Company, Bismarck Rewane, warned that Nigeria’s economic growth prospects are tightly linked to solving its electricity deficit.
“Nigeria cannot grow economically without an adequate power supply,” Rewane stated, echoing the urgency of the reforms the AfDB programme supports.
The AfDB’s funding boost signals a strategic push toward a resilient, diversified energy mix that can support the country’s broader economic transformation agenda.
