FG secured over $2 billion loan in two years to boost electricity supply – Adelabu

Adebayo Adelabu, minister of power has announced that the federal government, in the last two years secured over $2 billion to enhance Nigeria’s access to electricity.

Adelabu disclosed this at the Nigerian Economic Summit (NES31) in Abuja. According to him, the Federal Government is leveraging bilateral funding and development finance to de-risk investments and attract private participation for access expansion across underserved and unserved communities, educational institutions, healthcare facilities and government institutions.

A breakdown of the total fund showed that $750 million was from World Bank DARES program for off-grid and mini-grid expansion, $500 million NSIA RIPLE platform to unlock private capital for renewables, and the $190 million JICA fund to complement DARES.

He said, “In the past two years, over $2 billion has been mobilized through key facilities, including the $750 million World Bank DARES program for off-grid and mini-grid expansion. the $500 million NSIA RIPLE platform to unlock private capital for renewables, and the $190 million JICA fund to complement DARES.

“Collectively, these interventions are accelerating renewable energy deployment and expanding reliable, affordable power across the country.”

He explained that in the area of infrastructure development, the Federal Government has introduced targeted national programs aimed at accelerating the viability, expansion, and modernization of the national grid.

The minister noted that under the phase zero of the Presidential Power Initiative (PPI), the transmission capacity has been enhanced to achieve grid stability, and overall system reliability, with over 700MW of additional transmission capacity already achieved.

He explained that under phase one of the PPI, contracts have been signed with Siemens Energy, CMEC, Elswedy Electric, and Power China with financing arrangements underway to support implementation.

Phase one is planned to add 7000MW operational capacity to the grid. “In parallel to the grid expansion, generation capacity is being expanded through the rehabilitation of existing NIPP plants to unlock about 345MW, alongside the successful integration of the 700MW Zungeru Hydropower Plant into the grid.

“Collectively, these interventions have helped sustain an average generation capacity of approximately 5,300MW in 2024 up from 4,200MW recorded in 2023.

“Additionally, the Federal Government has operationalized the Presidential Metering Initiative (PMI) to close the national metering gap and improve sector viability. Already, N700 billion has been secured from FAAC to deploy 1.1 million meters by end of 2025, and 2 million annually over the next five years under the PMI.

“This complements the 3.2 million meters being procured through the World Bank’s DISREP program, positioning Nigeria to close the metering gap within five years and strengthen transparency and revenue assurance across the value chain,” he added.