The African Development Bank (AfDB) has approved the disbursement of $250 million fund for the Nigeria Electrification Project (NEP) under the Rural Electrification Agency (REA), and extended support to Northern Nigerian states through the $ 20 billion 10,000MW Northern Africa Desert to Power fund.
Adebayo Adelabu, Minister of Power, made this known after the Bilateral Cooperation meeting with the AfDB cabinet, which was presided over by Dr. Akinwumi Adeshina, AfDB President, at the ongoing “Just Energy Transition and Agricultural Transformation for Africa” conference in Busan, South Korea.
According to him, the AfDB confirmed readiness to disburse a previously approved $250million fund for the NEP under the REA, dedicated to providing electricity access to served and underserved communities in Nigeria.
He also noted that the Northern Nigerian states will also benefit from the AfDB’s $20 billion Desert-to-Power initiative, which aims to develop 10,000 MW of solar power for eleven African countries.
Adelabu therefore emphasised that during the Bilateral Cooperation meeting with the African Development Bank (AfDB) cabinet, the Nigerian delegation secured an In-Principal Agreement from AfDB for Technical Advisory Sponsorship, potentially encompassing stress testing and capacity simulation of Nigeria’s Power infrastructure.
The Power Minister said that the aims of the Technical Advisory sponsorship was to establish operational capacity across the entire value chain, facilitating project prioritization.
Earlier, during the summit Kyungho Choo, South Korea’s Deputy Prime Minister, and AfDB President Akinwumi signed an agreement for an additional $28 million to the Korea-Africa Economic Cooperation Trust Fund. As of December 31, 2022, total contributions to the KOAFEC Trust Fund stood at $108.04 million.
The fund, established in 2006, is the largest bilateral trust fund of the African Development Bank (AfDB), supporting project preparation, capacity building, and technical assistance in regional member countries, including joint research and knowledge sharing.
The Trust Fund and the $600 million Korea-Africa Energy Investment Framework will support African countries in strengthening human capacity and technology for universal energy access and making Africa the world’s breadbasket.
Mr. Kyungho Choo, who also doubles as Korea’s Minister of Economy and Finance, in his remark highlighted Korea’s strength in high-tech industry and innovative technology.
He also pointed to the many opportunities that Africa offered as the world’s future market and industrial base with a vibrant young population.
Choo said that in cooperation with the African Development Bank, Korea supported energy projects for Africa’s sustainable development.