NIGERIA – NIGERIA has secured a US$500,000
grant from the African Development Bank (AfDB) to support the development of
clean energy in Nigeria.
The grant was approved under the AfDB’s Sustainable Energy Fund for Africa (SEFA), according to a statement issued by the bank in September this year.
The AfDB’s Sustainable
Energy Fund for Africa is a multi-donor facility established to generate
private sector investments in clean energy projects in Africa.
AfDB Acting Vice-President
for Power, Energy, Climate Change and Green Growth, Wale Shonibare, in the
statement said the grant would also support the inauguration of the Nigeria
Energy Access Fund (NEAF).
The Nigeria Energy Access
Fund is a private equity fund developed by ‘All On’, an impact investment firm
financed by Shell.
The Fund will make
strategic investments in sustainable energy in Nigeria, particularly in the
off-grid and mini-grid sectors, according to Shonibare.
Mr. Shonibare added that
NEAF would provide eligible projects and businesses with equity solutions that
were currently unavailable in the market.
“Nigeria requires bespoke
and innovative market-based solutions to provide its off-grid population, estimated
at 100 million, access to sustainable sources of energy,” Shonibare said
“The SEFA grant will be instrumental in the constitution of NEAF, and ultimately, the mobilisation of much-needed private sector investment for clean energy.”
Shonibare also noted that the
grant will support specific work streams to set NEAF in motion and enhance its
engagement with private and public sector investors.
Once operational, NEAF is
expected to complement AfDB’s ongoing sustainable energy initiatives in
disclosed that SEFA’s support to NEAF was aligned with the New Deal on Energy
The project is expected to
boost the Federal Government’s power sector recovery plans, in line with AfDB’s
Energy Sector Strategy.
It is estimated that
approximately 55 percent of Nigerian households do not have access to electricity.
The government has however
stepped up its efforts of realising universal power access to its citizens by
2030 by taking on ambitious power projects.
The Kebbi Solar Hybrid Power Plant Project with a capacity of 98.8KW and the US$2.5billion, 3600 MW pipeline projects that were unveiled in September this year are good examples of commitment of Nigeria towards realizing Universal Energy access.