With $2bn Portfolio In Nigeria, IDB Targets More Power Sector Investments
The Islamic Development Bank (IDB) has reaffirmed its commitment to Nigeria’s development agenda.
The bank revealed that it currently manages an active investment portfolio of nearly $2bn across key sectors such as energy, transport, agriculture, and education.
A statement from the Federal Ministry of Power, quoted Mr Alagi Gaye, speaking when he led a delegation of IDB officials on a courtesy visit to the Minister of Power, Chief Adebayo Adelabu, in Abuja.
Gaye noted that the Jeddah-based financial institution is seeking to expand its footprint in Nigeria’s power sector through a new programmatic approach under a Country Engagement Framework (CEF), currently being developed.
He explained that, unlike the bank’s earlier project-specific support since Nigeria joined the IDB in 2005, the new CEF will drive broader, sector-aligned interventions that are tailored to Nigeria’s policy priorities and infrastructure challenges.
“The IDB is transitioning from isolated projects to a more cohesive program-based model. This framework will enable us to support Nigeria more effectively, especially in areas like electricity access, where there is an urgent need for impactful investment”, he said.
Gaye reiterated the bank’s readiness to mobilise additional funding and attract private-sector participation to tackle Nigeria’s longstanding electricity infrastructure deficit.
Adelabu in his response, emphasised the need for substantial investment to ensure stable, efficient, and affordable electricity for Nigerians.
He noted that improving power supply remains a top priority for President Bola Tinubu’s administration, citing the Electricity Act of 2023 as a key step toward liberalising the sector.
Adelabu highlighted ongoing reforms, including the Presidential Power Initiative (PPI), a $2.3bn agreement with Germany’s Siemens Energy to modernise Nigeria’s ageing power grid.
He noted that the pilot phase, involving the installation of 10 power transformers and 10 mobile substations, has already improved grid stability, with plans for further expansion over the next few years.
“The government is also working on a ‘Super Grid’ project to tackle redundancy and has secured support from the World Bank and African Development Bank (AfDB) for transmission upgrades”, Adelabu said.
The minister also addressed challenges in the distribution segment, where inefficiencies persist despite privatisation.
“The government retains a 40 per cent stake in Distribution Companies (DisCos) and is exploring partnerships to improve their performance.
“A major concern is the metering gap, with only six million meters deployed out of 13 million registered consumers. To address this, the government launched the Presidential Metering Initiative (PMI), which aims to import two million meters annually over five years”, Adelabu said.
He urged the bank to review feasibility studies for proposed projects, and expressed confidence in the partnership, citing the bank’s credibility as a financial institution.
With $2bn Portfolio In Nigeria, IDB Targets More Power Sector Investments is first published on The Whistler Newspaper
