The African Development Bank (AfDB) has approved $210 million for the financing of the Nigeria Transmission, Distribution Project (NTEP1), to upgrade the nation’s power lines and improve distribution and supply.
Facilitated by the Transmission Company of Nigeria, the project will improve the capacity and reliability of Nigeria’s transmission grid, and will run across the states of Kano, Kaduna, Delta, Edo, Anambra, Imo and Abia.
“Nigerians and their businesses spend $14 billion annually on inefficient and expensive petrol or diesel-powered generators. This project will contribute significantly to the reduction of Nigeria’s power deficit, decrease air and noise pollution and reduce the cost of doing business,” says AfDB’s Senior Director for Nigeria, Ebrima Faal.
The financing comprises of a $160 million loan and a $50 million loan from the Africa Growing Together Fund, which will support the construction of 330kV double circuit quad transmission lines and substations across Nigeria.
The funds for this project will also be used to upgrade existing 263km of 330kV lines and add an additional 204km of new lines. The project will significantly improve Nigeria’s electricity supply, have a direct impact on the country’s economy and the quality of life of Nigerians.
The project also aligns with the Bank’s High 5 priority to ‘Light up and Power Africa’ and the New Deal on Energy in Africa.