The African Development Bank Group (AfDB) has approved a $210m loan to support the Nigeria Transmission Expansion Project (NTEP1).
The project is part of a $1.6bn Transmission Rehabilitation and Expansion Programme (TREP) and executed by the Transmission Company of Nigeria.
As part of this initiative, the AfDB’s financing package will be provided to the Federal Republic of Nigeria.
AfDB Nigeria senior director Ebrima Faal said: “Nigerians and their businesses spend $14bn 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.”
The financing will be used to rehabilitate and upgrade the country’s electricity lines to improve power distribution and supply.
NTEP1 is aligned with the government’s strategic plans expressed in its Economic Recovery and Growth Plan (2017-2020) and Power Sector Recovery Programme.
The power project will cover the states of Kano, Kaduna, Delta, Edo, Anambra, Imo and Abia, and improve the capacity and reliability of the Nigerian transmission grid.
Financing offered by the bank includes a $160m loan while the additional $50m loan will be offered through the Africa Growing Together Fund.
The project will involve the construction of 330kV double-circuit quad transmission lines, along with substations across the country.
Additionally, around 263km of 330kV lines will be upgraded. As part of the project, 204km of new lines will also be added to increase TCN’s wheeling capacity to stabilise the grid and reduce transmission losses.
Once completed, the project is expected to improve electricity supply in the country.
Furthermore, NTEP1 is expected to save nearly 11,460ktpa of carbon emissions that are released by the small-scale diesel generators while supporting Nigeria’s GHG emission reduction objective.
During the construction phases, the project is expected to create 1,500 employment opportunities and 500 during operations.