AfDB Commits $1.2 Million Grant to Support Nigeria’s Grid Stability

The African Development Bank (AfDB) has approved a $1.2 million grant aimed at bolstering the resilience and sustainability of Nigeria’s national electricity grid. This funding supports a feasibility study focused on Battery Energy Storage Systems (BESS) and comes under the Bank’s Energy Transition Catalyst Programme.

The announcement was made during a Transmission Company of Nigeria (TCN) workshop in Abuja, where key stakeholders from government, academia, and financial institutions gathered to shape the roadmap for Nigeria’s future power infrastructure.

The grant is aligned with Nigeria’s Mission 300 vision, which seeks to deliver stable electricity to 300 million people by 2030. The feasibility study will examine options for integrating battery storage into existing grid assets, evaluate potential regulatory and financing frameworks, and assess the commercial viability of decentralized power solutions.

TCN representatives emphasized that this grant is not just about infrastructure—it’s about ensuring power delivery becomes more reliable, efficient, and adaptive. Power outages have long plagued the Nigerian economy, disrupting businesses and weighing on productivity. By supporting storage systems that can smooth supply peaks and improve voltage quality, the AfDB hopes to enable scalable, sustainable energy access while fostering investor confidence.

The study’s outcomes will create a blueprint for public-private participation models and regulatory reforms, enabling Nigeria to tap into renewable energy sources more effectively. Proponents argue this could pave the way for large-scale deployment of solar-plus-storage systems, microgrids in underserved regions, and capacity-building programs to spur local innovation in clean power technologies. Officials believe this grant represents a critical milestone in Nigeria’s transition toward a greener, more resilient power sector.