European Bank Plans $1.5 Billion Investment in Nigeria, Prioritizing Power Sector

The European Bank for Reconstruction and Development (EBRD) has announced ambitious plans to invest a minimum of $1.5 billion in Nigeria over the next three years. This commitment follows Nigeria's accession as a shareholder in the multilateral lender in July 2025, marking a significant step in strengthening economic ties.

“

Nigeria only became a shareholder of the EBRD last July and became a country of operations last October. So, we can only invest and start developing projects in Nigeria since October 2025. Before October 2025, we could not work in Nigeria because Nigeria was not a shareholder.

Within its inaugural year of operations, which commenced in October 2025, the EBRD has already channeled $280 million into various investments in Nigeria, including trade finance. The bank's Managing Director for Sub-Saharan Africa, Heike Harmgart, expressed optimism about the pace of opportunities, noting that investments are expected to accelerate as local operations expand from its newly opened Lagos office.

“

Since October 2025, we have invested including the trade finance $280 million. Since the beginning of the year, it is $180 million because we did $100 million last year.

Harmgart highlighted Nigeria's power sector as a critical area, presenting both immense development challenges and substantial investment potential. Addressing the persistent electricity constraints, she explained, would significantly reduce operating costs for businesses, enhance productivity, and attract greater private sector investment across the economy. The EBRD is demand-driven and actively developing projects as they arise, without a fixed annual investment ceiling, aiming to capitalize on as many opportunities as possible.

“

This year is looking good. We are probably looking at around $300 million this year, but we don’t have a ceiling or fixed target as such, but we want to use as many opportunities as possible.

The EBRD Country Head for Nigeria, Hamza Al-Asaad, confirmed that the institution has no predetermined sector allocation for the country, emphasizing a largely demand-driven approach. Heike Harmgart indicated that the bank anticipates investing around $300 million this year and is keen to respond to the Nigerian Minister of Finance's call for increased engagement, leveraging the ambition of new shareholders.

“

Over the next three years, our expectation is that we would do a minimum over three years of $1.5 billion. That is an estimate and I hope we do more.