AfDB pledges $500mn for Nigeria’s battery energy storage system (BESS)

Nigeria’s grid battery energy storage system (BESS) is set to receive a $500mn facility from the African Development Bank (AfDB), President Bola Tinubu has announced.

The initiative aims to enhance electricity access for 2mn Nigerians as part of broader efforts to improve the country’s energy infrastructure. The announcement followed Tinubu’s participation in the Mission 300 Africa Energy Summit in Tanzania, where he urged African leaders to prioritise energy accessibility.

Beyond the BESS, the AfDB has pledged $1.1bn in financing to provide electricity to 5mn people by 2026. Additionally, a $200mn commitment to the Nigeria Electrification Project is expected to extend power access to 500,000 people by 2025. The World Bank is also supporting Nigeria’s energy initiatives with a $750mn package aimed at expanding mini-grids and standalone solar solutions to reach 16.2mn people.

A press release issued by Bayo Onanuga, Special Adviser to the President, highlighted Nigeria’s growing renewable energy sector, which attracted over $6bn in investments in 2024. Tinubu also outlined the federal government’s plans to develop electric vehicle charging infrastructure, improve emission standards, and encourage private-sector participation in clean energy projects.

The International Finance Corporation (IFC) has pledged $70mn for five renewable electricity service providers under Nigeria’s Distributed Access Through Renewable Energy Scale-Up (DARES) programme. The initiative will be implemented by the Rural Electrification Agency (REA) as part of Nigeria’s broader National Energy Compact.

African leaders at the summit endorsed the Dar es Salaam Declaration, committing to universal electricity access within the next five years. The Nigerian government estimates that achieving last-mile electrification will require an investment of $23.2bn, with contributions expected from both public and private stakeholders.