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AFDB Invests $500 Million in Nigeria’s Power Sector Reform

By Mustapha Muhammad

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The African Development Bank (AFDB) has injected $500 million (₦766.7 billion) into Nigeria’s electricity sector as part of a comprehensive $1 billion support program to drive energy transition and governance reforms, bank Director General revealed during a key energy storage workshop.

Dr. Abdul Kamara, AFDB’s Nigeria Director General, announced the disbursement at the inaugural Battery Energy Storage Systems (BESS) feasibility study workshop organized by the Transmission Company of Nigeria (TCN).

He emphasized the funding aims to “help Nigeria have an improved and robust energy sector to provide electricity for its citizens,” with a second phase already underway to expand energy access nationwide.

Highlighting Africa’s untapped renewable resources, Kamara noted: “Africa holds almost 60% of the world’s best solar resources, yet accounts for only 2% of global energy storage capacity.”

He pointed to successful battery storage projects in South Africa (1,400MWh) and Kenya as models for Nigeria’s planned integration of renewable energy with grid stability solutions.

TCN Managing Director Engr. Sule Ahmed Abdulaziz stressed the BESS study’s critical timing, stating it will assess “technical and commercial dimensions… institutional readiness, operational protocol and capacity building priority.”

The project aligns with AFDB’s additional $1 million technical assistance program supporting implementation of Nigeria’s Electricity Act and state-level market development.

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