The Islamic Development Bank (IDB) has announced plans to expand its engagement with the Federal Government of Nigeria to tackle infrastructure gaps in the nation’s power sector.
The proposed partnership, revealed during a courtesy visit to Nigeria’s Minister of Power, Adebayo Adelabu, could pave the way for targeted investments aligned with Nigeria’s energy reform priorities.
Led by Mr. Alagi Gaye, a senior official at the Jeddah-based multilateral lender, the IDB delegation expressed interest in supporting Nigeria through a new Country Engagement Framework.
This marks the first strategic framework the bank has drafted for Nigeria since the country joined the IDB in 2005.
“Unlike the previous project-based approach, the bank now prefers programme-based interventions aligned with Nigeria’s sectoral policies and regulatory landscape,” said Gaye.
He confirmed that the IDB currently oversees an active $2 billion portfolio in Nigeria, spanning energy, transport, agriculture, and education, with plans to scale up its footprint in power infrastructure.
Responding to the offer, Minister Adelabu reaffirmed that power sector improvement remains central to President Bola Tinubu’s Renewed Hope Agenda. He referenced the Electricity Act of 2023, a sweeping reform designed to liberalize and decentralize the sector.
“Our goal is stable, affordable electricity for all Nigerians. We’re creating frameworks to attract private capital and modernize our grid.”, Adelabu stated.
Minister Adelabu acknowledged persistent problems in the distribution segment, despite the sector’s partial privatization. The Federal Government retains a 40% stake in DisCos and is exploring performance-boosting partnerships.
A pressing issue remains the metering deficit: only 6 million meters deployed for over 13 million registered consumers.
To close this gap, the government launched the Presidential Metering Initiative (PMI), targeting 2 million imported meters annually over the next five years.
Minister Adelabu also spotlighted the “Mission 300” programme, a bold push to deploy solar mini-grids and home systems for off-grid communities. This approach is especially critical in areas where extending the national grid is impractical.
“Our renewables drive is born from necessity—not emissions targets,” Adelabu said, pointing to Africa’s low carbon footprint and high energy access needs.
He praised the IDB’s financial strength and technical credibility, urging the institution to review feasibility studies for upcoming projects and work with Nigeria to accelerate sustainable electrification.