Nigeria Secures $1.1 Billion AfDB Loan to Electrify 5 Million People by 2026

In a major boost to Nigeria’s power sector, the African Development Bank (AfDB) has approved a staggering $1.1 billion loan to enhance electricity access for five million Nigerians by 2026. This development, announced via Nigerian Stories’ official X handle, marks a significant step toward bridging the country’s persistent energy gap.

With over 85 million Nigerians currently lacking access to electricity—the highest number in sub-Saharan Africa—this initiative aims to transform the lives of millions by expanding power infrastructure, promoting renewable energy solutions, and improving grid efficiency. The AfDB’s financing is expected to support off-grid solar projects, rural electrification, and the enhancement of power distribution networks across the country.

According to sources, the funds will be strategically allocated to:

Expanding the national grid to underserved areas.

Supporting mini-grid and off-grid renewable energy solutions to provide sustainable electricity to rural communities.

Enhancing power transmission and distribution to improve supply reliability.

Boosting energy access for businesses to stimulate economic growth.

This landmark loan aligns with the Nigerian government’s commitment to achieving universal electricity access by 2030 under the Presidential Power Initiative (PPI) and the Rural Electrification Strategy and Implementation Plan. The move is expected to catalyze industrialization, improve healthcare and education services, and create thousands of new jobs within the energy sector.

Experts believe that unlocking electricity for five million people will significantly reduce reliance on expensive and environmentally harmful generators, thereby cutting carbon emissions and fostering a greener economy.

Despite multiple interventions in the past, Nigeria’s power crisis has remained a major bottleneck to economic growth. While the $1.1 billion AfDB loan presents a golden opportunity for transformation, questions linger over government transparency, project execution, and sustainability.

Will this funding finally deliver the much-needed electricity Nigerians have long yearned for, or will it be yet another failed promise in the country’s turbulent power sector?

Only time will tell.