AfDB Approves $1.2 Million Grant to Power Nigeria’s Battery Energy Storage Roadmap
Nigeria’s efforts to transform its electricity sector have received a major boost as the African Development Bank (AfDB) has approved a $1.2 million grant to support a feasibility study on Battery Energy Storage Systems (BESS). The move is aimed at enhancing grid stability, accelerating renewable energy integration, and advancing energy access for millions of Nigerians.
Announced in Abuja, the grant is part of the AfDB’s Africa Energy Transition Catalyst Programme and was revealed by the bank’s Nigeria Country Office Director General, Dr. Abdul Kamara. Represented by Chigozie Egerue, Kamara emphasized that energy access remains a critical challenge in Nigeria, where nearly 90 million people still live without electricity.
“This is why the bank has committed a $1.2 million grant to fund the feasibility study,” Kamara said. “Beyond the technology, we need sustainable regulatory frameworks and investment models to ensure long-term success.”
The Transmission Company of Nigeria (TCN) will oversee the implementation of the study. It will examine how battery storage can be integrated into the national grid, explore financing frameworks, and build local capacity to manage and maintain the systems.
Kamara described battery storage as a “critical enabler” for Africa’s energy future, noting the continent’s alignment with the Mission 300 initiative — an ambitious goal to connect 300 million Africans to electricity by 2030. “Africa holds nearly 60% of the world’s best solar resources but accounts for just 2% of global energy storage capacity,” he added.
The grant forms part of a broader support package from the AfDB for Nigeria’s energy transition. The bank has already disbursed $500 million under its $1 billion Economic Governance and Energy Transition Support Programme and invested an additional $1 million into the Africa Energy Sector Technical Assistance Programme to back the implementation of Nigeria’s Electricity Act and promote state-level energy market reforms.
AfDB’s Desert to Power Initiative, a $20 billion plan to generate 10,000MW of solar power across the Sahel and provide electricity for 250 million people, was also highlighted by Kamara as a key opportunity for Nigeria to unlock its clean energy potential.
Speaking at the event, Nigeria’s Minister of Power, Chief Adebayo Adelabu, represented by Engr. Ben Anyagwu, Assistant Director of Renewable Energy, said the study would be instrumental in fortifying Nigeria’s energy infrastructure. “With the increasing deployment of solar and wind energy, storage systems are vital for grid stability, reducing reliance on fossil-fuel peaking plants, and ensuring overall reliability,” he said.
The Managing Director of TCN, Engr. Sule Abdulaziz, represented by Olugbenga Ajiboye, Executive Director of Transmission System Operation, echoed this sentiment. He noted that battery energy storage can address longstanding technical issues such as frequency instability, peak load pressures, and reactive power limitations — ultimately boosting grid performance and extending the life of existing infrastructure.
With this grant, Nigeria takes another step toward building a more resilient and sustainable power sector, aligning its goals with regional and global energy transition efforts.
