A whopping $100m finance package for the rehabilitation of Nigeria’s most reliable and cheapest electricity generators, Kainji and Jebba hydro plants, has been approved by the Board of Directors of the African Development Bank (AfDB).
This package consists of an $80m loan and another $20m equity. This stimulus package is aimed at increasing the available capacity from the current 917MW to the actual installed capacity of 1338MW.
The Bank, led by Nigeria’s Akinwumi Adesina, made this investment in the pursuit of its New Deal on Energy for Africa. This is a key component of the bank’s High 5 strategy for lighting up and powering Africa. This also fits perfectly into one of the goals of Nigeria’s Vision 2020 which is improved provision and access to electricity in the country.
This foray into Nigeria’s power sector, which is the first of its kind from the bank, intends to achieve the tripartite objective of improving power generation and supply in the country, expanding renewable energy generation in the country and increase investor confidence in Nigeria’s power sector. The country’s ongoing power sector reforms also aim at complementing the efforts being made and freeing up space for private participation.
For the Continental Bank, the project is key as it improves the life of the people and their livelihood with the improvement in power supply. This project would also directly affect the country’s economy as more revenue would be generated across the value chain. The environment would also benefit from a more renewable alternative of power generation which fits perfectly into the continent’s goals on climate change and ecological challenges.