AfDB Grants $1.2 Million to Power Nigeria’s Battery Storage Study and Clean Energy Push

The African Development Bank (AfDB) has awarded a $1.2 million grant to support a feasibility study on Battery Energy Storage Systems (BESS) in Nigeria—a major step forward in the country’s efforts to transition to cleaner and more reliable energy.

The announcement was made during the inaugural BESS feasibility workshop held in Abuja, co-organized by the Transmission Company of Nigeria (TCN), AfDB, and the Sustainable Energy Fund for Africa.

Abdul Kamara, AfDB’s Director-General for Nigeria—represented by Chigoziri Egeruoh—explained that the grant falls under the Africa Energy Transition Catalyst Programme, which seeks to accelerate sustainable power solutions across the continent.

Kamara noted that Africa, despite having nearly 60% of the world’s top solar resources, contributes only 2% to global energy storage capacity—a gap that Nigeria is now positioned to help bridge.

Highlighting successful battery storage models in South Africa and Kenya, Kamara said, “Nigeria is now poised to take a bold step in that same direction.”

The feasibility study, to be carried out by TCN, will examine Nigeria’s technical readiness, policy environment, and infrastructure needs to integrate battery storage into its national grid. It will also explore investment opportunities, long-term sustainability, and regulatory frameworks to support a scalable energy transition.

Kamara emphasized that the study aligns with the Energy Transition Plan, the Sustainable Energy for All (SE4ALL) agenda, and Nigeria’s Renewable Energy Master Plan. He stressed that grid-level storage is no longer optional.

“Storage is critical for grid reliability, peak load management, and frequency regulation,” he said. “But beyond technology, Nigeria also needs reforms and investment incentives to scale up these solutions.”

The AfDB is also supporting Nigeria through its broader $1 billion Economic Governance and Energy Transition Support Programme, with $500 million already disbursed. An additional $1 million grant through the Africa Energy Sector Technical Assistance Programme (AESTAP) is aiding the implementation of the new Electricity Act and building state-level electricity markets.

Other notable AfDB investments in Nigeria include:

• $200 million Nigeria Electrification Project (NEP) for mini-grid and off-grid solutions
• $250 million Nigeria Transmission Expansion Project (NTEP) to strengthen national grid infrastructure
• The $20 billion Desert to Power initiative, aiming to deliver 10,000 MW of solar power across the Sahel and reach 250 million people

Speaking on behalf of TCN’s Managing Director, Olugbenga Ajiboye, Executive Director of Transmission Service Provider, underscored the technical challenges facing Nigeria’s grid—especially in frequency regulation, peak load management, and voltage stability. He described battery storage as a viable solution to these issues.

“The study is timely and necessary to optimize transmission capacity and overall grid performance,” he noted.

Also speaking at the event, Minister of Power, Adebayo Adelabu, described the BESS study as a “strategic intervention” to guide Nigeria’s clean energy pathway—not just a technical exercise.

This initiative signals a major shift in Nigeria’s energy agenda, with the AfDB continuing to play a vital role in supporting the country’s sustainable energy transformation.