Nigeria: $500m funding from Japan for energy infrastructure
The Japanese International Cooperation Agency (JICA) has invested $500 million to enhance the power supply infrastructure in Nigeria’s Ogun and Lagos States.
The investment will strengthen transmission infrastructure along the Lagos-Ogun Industrial Corridor, focusing on Agbara, Mowe and Shagamu.?
It includes building new substations, upgrading existing ones, and improving high-voltage power lines.?
According to state media, Minister of Power Adebayo Adelabu announced the investment during a courtesy visit from Ogun State Governor Dapo Abiodun.?
During the meeting, Adelabu also urged Abiodun to push for improved gas pipeline infrastructure to support power plants.?
The funding comes amid the Nigerian Electricity Regulatory Commission (NERC) transferring regulatory oversight of the electricity market to the states’ electricity regulatory bodies.
So far, it has done so in Oyo State (5 August), Imo State (1 July), Ondo State (April 23) and Enugu and Ekiti?states (April 22).?
This handing over of regulatory oversight by NERC to the states?complies with the country’s amended Constitution and Electricity Act 2023.
The amended section empowers state governments to legislate on electricity provision within their territories.?
Loan for electricity infrastructure in Nigeria
Two weeks ago, the African Development Bank (AfDB) approved a loan of $500m to Nigeria to finance the first phase of the Economic Governance and Energy Transition Support Programme (EGET-SP).
It is a new programme aimed at accelerating transformation of the electricity infrastructure in Nigeria and improving access to cleaner sources of energy.
The loan will help close the financing gap of the Federal Budget in the 2024/25 fiscal year, specifically supporting the implementation of the country’s new Electricity Act and the Nigeria Energy Transition Plan.
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“The Nigerian government launched the energy transition plan in August 2022, and in June 2023, passed a new Electricity Act decentralising the electricity supply industry and setting the stage for increased investments by subnational [states] governments and the private sector,” said the AfDB.
The energy transition plan envisions developing 250GW of installed electricity capacity by 2050, 90% of which will be renewables.?
The Bank said it will provide clean cooking access to the majority of the population by 2030, using liquefied petroleum gas (LPG), biogas, biofuels like ethanol, and electric cookstoves.
Sadiq Mohammed, COO of Kaduna Electric on the need for investment and how the new energy act will bring about sector reforms in Nigeria
FAQs on electricity in Nigeria
Is electricity reliable in Nigeria?
According to Afrobarometer, only?13% of Nigerians enjoy a reliable supply of electricity from the national grid.
How many Nigerians live without electricity?
The World Resource Institute says more than 85 million Nigerians do not have access to electricity.
Does Nigeria have loadshedding?
For years, power cuts, outages and blackouts have been a daily reality for many in Nigeria.
How much power does Nigeria have?
Nigeria generates most of its power through thermal and hydro, with an installed capacity of about 12,522MW, according to the US International Trade Administration.