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AfDB Commits Over $951 Million To Solving Nigeria’s Energy Challenges

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Group photograph of special guests at the inaugural/inception workshop on Nigerian Battery Energy Storage Systems (BESS) feasibility study held Wednesday, 30th July, 2025 in Abuja. Photo credit: OPTIMUM TIMES

 

…As TCN Commends BESS Capacity To Solve Transmission Issues

By Clement Nwoji, Abuja

African Development Bank (AfDB) has committed at least $951.2 million in support of resolving Nigeria’s energy challenges just as it restated commitment for further investments as Nigeria inaugurated Battery Energy Storage Systems (BESS) feasibility study.

 

The Director General, African Development Bank, Nigeria Country Department, Dr. Abdul Kamara, made this disclosure while speaking at the opening session of the inaugural/inception workshop on “Nigerian Battery Energy Storage Systems (BEES) feasibility study.

 

Dr. Kamara who maintained that Battery Energy Storage System is a critical enabler towards achieving inclusive power supplies to Nigerians decried current situation where he observed that over 90 million Nigerians are still without access to electricity.

This is even as the Managing Director/Chief Executive Officer of the Transmission Company of Nigeria (TCN), Engr. Sule Ahmed Abdullaziz, applauded Battery Energy Storage Systems as a powerful means to address persistent challenges confronting transmission.

According to Dr. Kamara, “This is why the Bank has committed a 1.2-million-dollar grant under the Africa Energy Transition Catalyst Programme to support this feasibility study.

“Implemented through the Transmission Company of Nigeria, the project will assess grid integration, identify viable business and regulatory models to attract investment, and build the capacity needed for ownership and sustainability.

“Battery storage is no longer a luxury; it is a necessity. As Nigeria’s grid evolves, storage offers real solutions: frequency stabilization, reserve capacity, and peak load management, among others. But as we all know, technology alone will not carry the day. Regulatory frameworks and investment environments must evolve in step to scale these innovations sustainably.”

Assuring AfDB’s commitment to supporting Nigeria its energy transition journey, he said “Through our One-billion-dollar Economic Governance and Energy Transition Support Programme, we are helping Nigeria advance critical power sector reforms. Five Hundred million dollars has already been disbursed, with the second phase on track.

“In addition, under our One Million Dollar grant Africa Energy Sector Technical Assistance Programme (AESTAP), we’re supporting implementation of the Electricity Act, building state-level electricity markets, and strengthening governance.

“And of course, we continue to invest directly in energy infrastructure: from the Two Hundred Million Dollars Nigeria Electrification Project (NEP) expanding mini grids and off-grid access, to the Two Hundred and Fifty million dollars Nigeria Transmission Expansion Project (NTEP) reinforcing the national grid.”

He urged participants involved in the feasibility study to ensure it produces real, actionable outcomes that reflect Nigeria’s priorities and realities.

In his address, the TCN Managing Director, Engr. Sule Ahmed Abdullaziz represented by Executive Director (TSP), Olugbenga Ajiboye said: “For years, our operational teams have contended with the challenges of frequency fluctuations, peak load pressures, and limitations in reactive power support.

“These technical constraints affect every layer of the electricity value chain-from generation dispatch to the final delivery of power to homes and industries.

“Battery Energy Storage Systems offer us a powerful means to address these persistent challenges. For example, they enable frequency regulation, reserve capacity, and voltage support-directly strengthening grid performance and unlocking more efficient use of our transmission assets. This is precisely why this feasibility study is both timely and so important.”

Minister of power who was represented by Assistant Director, Renewable, Bem Anyagwu, said that although the sector has undergone significant reforms, “Yet, key challenges persist particularly the issues of power intermittency, limited dispatchability of renewables, grid instability, and underutilized energy generation.

“With the increasing penetration of solar and wind energy in our energy mix, we must now address the critical challenge of energy storage: storing electricity when generation exceeds demand and dispatching it when needed to maintain balance and reliability.

“Battery Energy Storage Systems (BESS) provide the most practical and scalable solution to this challenge.”

 

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