The Islamic Development Bank (IDB) is stepping up efforts to help Nigeria fix electricity problems, committing an active $2 billion portfolio to boost the nation’s power infrastructure.
Nigeria’s Minister of Power, Adebayo Adelabu, met with top IDB leaders this week to discuss new ways of tackling Nigeria’s inconsistent energy supply. The meeting, held in Abuja, signals a shift from small, one-off projects to a bigger, program-based approach designed to match Nigeria’s vision for electricity reform.
Mr. Alagi Gaye, a senior official from IDB, explained, “Unlike before, the bank now prefers programme-based interventions aligned with Nigeria’s policies.” The bank’s current projects in Nigeria include improvements in energy, transport, agriculture, and education. But with the new engagement framework, the focus is now more on the power sector, an area critical to daily life and economic growth.
Minister Adelabu thanked the IDB for its support and highlighted the government’s plans: “Our goal is stable, affordable electricity for all Nigerians. We’re creating frameworks to attract private capital and modernize our grid.” Nigeria’s new Electricity Act (2023) is at the center of these efforts, aiming to open up the sector for more private investment and stronger regulation.
Major power projects are already underway, including, the $2.3 billion Presidential Power Initiative (PPI) with Siemens Energy. This project has seen the delivery of 10 power transformers and 10 mobile substations, which are already improving grid reliability. The proposed ‘Super Grid’ project to make the system more robust, supported by the World Bank and African Development Bank (AfDB).
But problems remain, especially in distributing power. Despite partial privatization, the government still owns 40% of Nigeria’s electricity distribution companies (DisCos) and wants to work with new partners to boost their performance.
A big challenge is metering. Out of over 13 million registered electricity users, only 6 million have meters. To address this, the government has started the Presidential Metering Initiative, aiming to bring in 2 million new meters each year for the next five years.
Adelabu also announced the “Mission 300” programme, which focuses on getting power to rural areas through solar mini-grids and home systems. “Our renewables drive is born from necessity, not emissions targets,” he said, emphasizing Nigeria’s need to expand access rather than just reduce carbon emissions.
The IDB will review new project studies to find ways to speed up Nigeria’s journey to reliable, affordable electricity for everyone.
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