The funding is set to provide electricity access to 5 million Nigerians by the end of 2026.

Nigeria has made significant progress in addressing its ongoing energy challenges by securing a $1.1 billion loan from the African Development Bank (AfDB). This funding, announced by Bayo Onanuga, Special Adviser to President Bola Tinubu on Information and Strategy, is allocated to provide electricity access to 5 million Nigerians by the end of 2026.

The agreement was finalized during the recent Africa Energy Summit in Tanzania. Onanuga stated on X that President Tinubu recognized AfDB’s $1.1 billion investment, which is expected to provide electricity to 5 million people by 2026. Additionally, AfDB’s $200 million contribution to the Nigeria Electrification Project will provide power to 500,000 people by the end of 2025.

The $1.1 billion loan is part of a larger support package for Nigeria. AfDB is also planning to invest $700 million in the Nigeria Desert to Power program and has intentions to establish a $500 million facility for the Nigeria-Grid Battery Energy Storage System. These investments are expected to bring electricity to another 2 million people, as noted by Onanuga.

President Tinubu expressed his appreciation to Ajay Banga, President of the World Bank Group, and Dr. Akinwunmi Adesina of AfDB for their commitment to Africa’s development. He stated, “Their transformative vision will light up and power Africa.”

Emphasizing the urgency of addressing Africa's energy deficit, President Tinubu stated, “As we all know, Africa is rich in energy resources, yet millions of our citizens still lack access to reliable and affordable energy. This situation is unacceptable. It is our responsibility to take collective action to change this narrative.”

The President also highlighted Nigeria’s ongoing efforts to invest in renewable energy, particularly solar power. He mentioned that the federal government is nearing the completion of an electric vehicle (EV) charging infrastructure program that focuses on renewable energy while also working to establish stricter vehicle emission standards.

Like many African countries, Nigeria faces widespread electricity shortages, with less than 50% of the population having regular access to power, according to data from the World Economic Forum.