AfDB approves $210m in financing for Nigeria Transmission Expansion Project

AfDB approves $210m in financing for Nigeria Transmission Expansion Project

The African Development Bank Group has approved a $210m financing package for the Nigeria Transmission Expansion Project (NTEP1), which aims to rehabilitate and upgrade the country’s power lines and improve distribution and supply. The project will run across the states of Kano, Kaduna, Delta, Edo, Anambra, Imo, and Abia.
Executed by the Transmission Company of Nigeria, NTEP1 is part of the $1.6bn Transmission Rehabilitation and Expansion Programme (TREP).

“Nigerians and their businesses spend $14bn 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,” said Ebrima Faal, the bank’s senior director for Nigeria.

Stabilising grid, reducing transmission losses

The bank’s financing, comprising a $160m loan, and an additional $50m 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 263km of 330kV lines, while adding an additional 204km of new lines to increase TCN’s wheeling capacity, stabilise the grid and reduce transmission losses.

Wale Shonibare, the bank’s acting vice-president for power and energy, said implementation of the project would increase evacuation capacity from the south of the country towards the north, where power supply is limited. “NTEP1 will increase the grid transmission stability and capacity, and reduce the amount of stranded power, whilst improving power export and regional power system integration to the West African Power pool, especially through Niger and Benin interconnections,” he said.