Nigeria Secures $500m World Bank Loan to Transform Water And Energy Sectors
In a bid to revitalise its water and energy infrastructure, Nigeria has secured a $500m World Bank loan to enhance water resource management for hydropower and irrigation. The agreement, formalised on Tuesday through a Memorandum of Understanding between the Federal Ministry of Water Resources and Sanitation, the Ministry of Power, and the World Bank, aims to improve dam safety and optimise water resources nationwide.
The project, dubbed the Sustainable Power and Irrigation for Nigeria (SPIN), will benefit 25 states, including Benue, Katsina, Akwa Ibom, Niger, and Kogi, among others. Ministers Joseph Utsev (Water Resources and Sanitation) and Adebayo Adelabu(Power) hailed the initiative as a transformative step toward addressing Nigeria’s energy and agricultural challenges.
Minister of Power Adebayo Adelabu underscored Nigeria’s untapped hydropower potential, noting that only 15% of the country’s estimated 14GW capacity has been utilised. “Hydropower contributes about 20% of our grid supply. With this project, we aim to optimise our natural resources to deliver clean energy while supporting agriculture and food security,” he said.
Adelabu also highlighted ongoing reforms under the Electricity Act 2023, which decentralises the electricity market and encourages subnational participation. He pointed to northern Nigeria’s extensive solar potential as part of a broader push to diversify the energy mix in line with the Nigeria Energy Transition Plan.
Water Resources Minister Joseph Utsev praised the World Bank as a vital development partner, citing the soon-to-conclude Transforming Irrigation Management in Nigeria project as a foundation for SPIN. “This initiative will boost food production, create jobs, and strengthen our economy,” Utsev said, adding that SPIN represents a pivotal moment in addressing Nigeria’s irrigation and energy needs.
With its focus on renewable energy and sustainable agriculture, SPIN is expected to reshape Nigeria’s energy landscape while delivering significant benefits to millions of citizens. Both ministers reaffirmed their commitment to the project’s success, calling it a critical step toward a more resilient and self-sufficient Nigeria.
