The Islamic Development Bank (IDB) is set to deepen its strategic partnership with Nigeria, targeting the nation’s struggling power sector as a key area for intervention. During a high-level visit to Abuja this week, the multilateral lender revealed plans to implement its first-ever Country Engagement Framework for Nigeria marking a shift from project-based funding to long-term, programmatic collaboration.
The IDB delegation, led by senior official Mr. Alagi Gaye, met with Nigeria’s Minister of Power, Adebayo Adelabu, to explore new ways of tackling infrastructure bottlenecks and expanding access to electricity. Nigeria became a member of the IDB in 2005, and the bank currently manages a $2 billion active portfolio in the country, covering energy, agriculture, transport, and education.
“The bank now seeks programme-based interventions tailored to Nigeria’s energy policies and regulatory reforms,” Gaye said, according to the Federal Ministry of Power’s press statement.
Tinubu’s Energy Roadmap Gains Global Support
Minister Adelabu described the IDB’s renewed interest as timely, aligning with President Bola Tinubu’s Renewed Hope Agenda, which places power sector transformation at the heart of economic recovery and industrial growth.
He referenced the Electricity Act of 2023 a landmark reform that decentralizes the national grid and empowers states to generate and distribute electricity independently. “Our priority is stable, affordable electricity for Nigerians,” Adelabu stated. “We’re building frameworks to crowd in private capital and modernize power infrastructure.”
According to the minister, notable efforts include:
- The $2.3 billion Presidential Power Initiative (PPI) in collaboration with Siemens Energy, which has already delivered 10 power transformers and 10 mobile substations to strengthen grid reliability.
- The proposed ‘Super Grid’ Project, a large-scale transmission upgrade supported by the World Bank and African Development Bank (AfDB), designed to address network redundancy and unlock renewable energy integration.
Addressing Nigeria’s Distribution Crisis and Metering Deficit
Despite the 2013 privatization of the power distribution segment, Nigeria continues to struggle with efficiency and accountability. Adelabu noted that while private investors own 60% of the DisCos, the Federal Government retains a 40% share and is now seeking performance-enhancing public-private partnerships.
A key concern is Nigeria’s metering shortfall: of the over 13 million registered electricity users, only 6 million have been metered. To close this gap and reduce estimated billing complaints, the government has launched the Presidential Metering Initiative (PMI). The plan aims to deploy 2 million imported smart meters annually for five years.
“Metering is central to accountability and efficiency,” Adelabu emphasized. “We must close the gap to improve cost recovery and consumer satisfaction.”
Rural Electrification Through Renewables: Mission 300
The meeting also spotlighted Nigeria’s off-grid electrification efforts through Mission 300, an ambitious rural energy project targeting over 300 communities. The program seeks to deploy solar mini-grids and standalone systems where national grid expansion remains technically or financially unviable.
Adelabu underscored the urgency of energy access in low-income, underserved areas, noting that Nigeria’s renewable push is driven by necessity rather than climate targets. “Africa contributes less than 4% of global emissions. For us, renewables mean survival and productivity,” he stated.
He urged the IDB to support feasibility studies and invest in scalable, clean energy projects that can deliver long-term socio-economic impact.
What You Should Know
- Nigeria’s electricity demand continues to outpace supply, with average generation hovering between 3,500–4,500 MW far below the estimated national need of 30,000 MW.
- The IDB’s planned engagement in Nigeria marks a broader shift among development partners toward systems-oriented interventions rather than isolated project financing.
- Analysts say partnerships like these could accelerate Nigeria’s ambition to become an energy-secure, investment-friendly nation if tied to robust policy execution.
With the IDB’s financial muscle and Nigeria’s reform-minded leadership, industry observers believe this collaboration could unlock a new era in the country’s long-troubled power sector.
