Board of Directors of the African Development Bank Group has approved a $210 million financing package to Nigeria, for Nigeria’s Transmission Expansion Project (NTEP1), which seeks to rehabilitate and upgrade the nation’s power lines and improve distribution and supply.
The project, which will run across the states of Kano, Kaduna, Delta, Edo, Anambra, Imo, and Abia, will improve the capacity and reliability of the Nigerian transmission grid where it is most constrained. Executed by the Transmission Company of Nigeria), NTEP1 is part of a $1.6 billion Transmission Rehabilitation and Expansion Programme (TREP).
“Nigerians and their businesses spend $14 billion 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,” Ebrima Faal, the Bank’s Senior Director for Nigeria, said.
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The bank’s financing, comprising a $160 million loan, and an additional $50 million loan from the Africa Growing Together Fund, will support construction of 330kV double circuit quad transmission lines and substations across the country. The project will upgrade existing 263 km of 330kV lines, while adding an additional 204 KM of new lines to increase TCN’s wheeling capacity, stabilize the grid and reduce transmission losses.
Upon completion, the project will significantly improve Nigeria’s electricity supply, and directly impact the economy, industries, businesses and the quality of life of Nigerians.
The project will also reduce the use of small-scale diesel generators and therefore contribute to the reduction of GHG emissions by saving approximately 11,460ktCO2 per year. The project will create about 2,000 direct jobs- 1,500 during construction and 500 during operations – especially for youth: 30% of these jobs are expected to be taken by women. By increasing electricity supplies to Small and Medium Enterprises, the project will foster the creation of additional indirect jobs.
