UK announces financial aid for Nigeria’s energy sector

The UK is committed to increasing both renewable energy and energy access in Nigeria, and driving sustainable and resilient growth

minister United kingdom about AfricaVicky Ford announced the provision of soft aid worth 10 million pounds to the energy sector Nigeria. Thus, the influx of new capital will help reduce financial risks when investing in energy access projects; In addition to contributing to the fulfillment of Nigeria’s environmental commitments acquired in COP26.

In this way, the funding will help Nigerian investors focus on low carbon energy for their upcoming projects. Similarly, mobilization of national institutional investment with local pension funds, insurance companies and other local investors will be addressed.

According to the British official, the assistance will expand national financing for clean energy infrastructure outside the country’s electricity grid. like mini sun networkand home systems and cold storage program for small and medium businesses.

This is clear evidence of the strong partnerships between our two countries and the UK’s commitment to supporting Nigeria; Especially in the energy sector with low carbon emissionsVicki Ford commented.

Energy Transition in Nigeria

He added that the UK is committed to increasing both renewable energy and energy access in Nigeria, leading to clean, sustainable and resilient growth.

As the world strives to transition to clean growth, we are witnessing an opportunity that defines an era for the private sector. This deal is particularly exciting as it combines the support of the UK Government with the institutional capital necessary to expand the sector on a large scale.“, he added.

On his part, Nigerian Minister of State for Energy Godwin Gede-Agba stated that Nigeria started the transition to clean energy in 2014; With the first hybrid solar project, implemented in Lagos, Kaduna and Borno states.

While all efforts have been directed towards launching private sector activity in the transition to clean energy, one of the major challenges remains the companies’ access to local currency financing.“, pointed out.

Fundraising will be implemented along with InfraCredit, a Nigerian entity providing collateral in the local currency (Naira); To improve the credit quality of debt instruments issued by sponsors of infrastructure projects.

Nigeria

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