African Development Bank Approves $210 Million for Nigeria Grid

(Bloomberg) -- Transmission Co. of Nigeria has secured $210 million funding from the African Development Bank to upgrade the nation's dilapidated power lines and distribution infrastructure, the Abidjan-based bank said in a statement.

The project, which is aimed at improving the reliability of Nigeria transmission grid in seven states -- Kano, Kaduna, Delta, Edo, Anambra, Imo, and Abia -- is part of a $1.6 billion program, the AfDB said.

After the project is implemented, Nigeria is expected to reduce the amount of stranded power and increase evacuation capacity from the south of the country toward the north where power supply is limited, AfDB's acting vice president for power and energy, Wale Shonibare said. The financing will assist in boosting power exports to the West African pool “especially through Niger and Benin interconnections,” he said.

Africa's most populous nation is only able to send about a quarter of its total power capacity to homes and businesses due to its outdated infrastructure, much of which was installed in the 1980s. The country's transmission lines can “theoretically” carry about 7,500 megawatts, according to the country's electricity regulatory authority.

Electricity demand in Nigeria is more than double the current supply of about 5,000 megawatts offered by power companies, even though the country sold control of 14 of such firms in 2013 in order to attract private investment and reduce blackouts.

To contact the reporter on this story: Tope Alake in Lagos at talake@bloomberg.net

To contact the editors responsible for this story: Andrew Davis at abdavis@bloomberg.net, Sam Unsted, Sara Marley

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