The Islamic Development Bank has expressed its readiness to partner the federal government to address critical infrastructure gaps in Nigeria’s power sector.
This was disclosed in a statement by Bolaji Tunji, spokesman for the power minister, on Wednesday.
Tunji stated that officials of the Jeddah-based financial institution, led by Alagi Gaye, made the offer during a courtesy visit to power minister Adebayo Adelabu.
He stated that the IDB delegation indicated the bank had available funding to support Nigeria’s energy development through a new Country Engagement Framework.
Mr Gaye revealed that the IDB currently manages an active portfolio of nearly $2 billion in Nigeria across various sectors, including energy, transportation, agriculture, and education.
He noted that the bank was keen on expanding its footprint in Nigeria’s power infrastructure. He explained that the bank was developing its first-ever Country Engagement Framework for Nigeria since it joined the IDB in 2005.
“Unlike the previous project-based approach, the bank now prefers programme-based interventions aligned with Nigeria’s sectoral policies, regulatory landscape, and identified challenges,” said Mr Gaye.
Mr Gaye acknowledged Nigeria’s significant electricity access gap and reaffirmed the IDB’s commitment to incentivising private-sector investments in the sector.
Mr Adelabu emphasised the urgent need for substantial investment to achieve stable, efficient, and affordable electricity for Nigerians. He reaffirmed that improving power supply remained a key priority of President Bola Tinubu’s administration, referencing the Electricity Act of 2023 as a major policy reform to liberalise the sector.
Mr Adelabu highlighted several ongoing initiatives, including the $2.3 billion Presidential Power Initiative in partnership with Germany’s Siemens Energy, which aims to modernize Nigeria’s aging power grid.
He said the pilot phase, which features the installation of 10 power transformers and 10 mobile substations, has already begun improving grid stability, with further expansion planned.
He also referenced the proposed ‘Super Grid’ project, designed to reduce transmission redundancy, which had received support from the World Bank and the African Development Bank.
Addressing persistent issues in the distribution segment, Mr Adelabu said that, despite privatisation, inefficiencies remained. He noted that the federal government retained a 40 per cent stake in electricity distribution companies and was pursuing partnerships to boost their performance.
A major concern, he said, was the metering gap, with only six million meters deployed for 13 million registered consumers.
“To bridge this, the government launched the Presidential Metering Initiative, which targets the importation of two million meters annually over the next five years,” said Mr Adelabu.
Mr Adelabu also mentioned the ‘Mission 300’ programme, which focused on renewable energy deployment for rural electrification.
“Given the difficulty of extending the national grid to remote areas, the government is investing in solar home systems and mini-grids to power households, schools, healthcare centres, and agriculture in rural communities,” he added.
On climate concerns, Mr Adelabu stated that Nigeria’s push for renewables was driven more by necessity than emission targets, noting Africa’s relatively low carbon footprint.
He welcomed the IDB’s willingness to partner Nigeria and urged the bank to review feasibility studies for upcoming projects. He expressed optimism about the collaboration, citing IDB’s credibility and financial strength.
“The discussions underscored the potential for partnership in transforming Nigeria’s power sector and ensuring sustainable energy access for all citizens,” he said.
(NAN)
