The African Development Bank (AfDB) has granted Nigeria a fresh $200 million loan for the funding of the country’s Electrification Project (NEP).
The bank said on Monday that it loaned $150 million for the project while the balance of $50 million was issued from the Africa Growing Together Fund (AGTF), a US$2 billion facility sponsored by the People’s Bank of China.
It said the joint financing is targeted at supporting the federal government efforts “to address critical energy access deficit in the country, and catalyze achievement of universal energy access by 2030 targets.”
“The Board of Directors of the African Development Bank Group has approved a US$150 million sovereign loan to the Federal Government of Nigeria to finance the Nigeria Electrification Project (NEP),” AfDB said in a statement.
“The Africa Growing Together Fund (AGTF), a US$2 billion facility sponsored by the People’s Bank of China and administered by the African Development Bank, has also approved a US$50 Million Loan to the Federal Government of Nigeria to co-finance the project.”
In his reaction, the managing director of the Rural Electrification Agency, Mr. Damilola Ogunbiyi said access to reliable, affordable and clean electricity will result in savings for households and businesses, which can be deployed to other uses.
“By supporting the electrification of unconnected and underserved communities, NEP will contribute materially to their economic development,” she said.