UK Injects Additional US$11.35M Into Nigeria’s Clean Energy Financing

NIGERIA – The United Kingdom has injected an additional US$11.35 million (about N6 billion) into the funding of off-grid low-carbon energy projects aimed at reducing carbon emissions.

The UK’s Minister for Africa, Vicky Ford, announced the donation at a formal ceremony in Abuja.

The donation will help to scale up solar-mini-grid and home systems, clean cooking infrastructure, and cold storage infrastructure in Nigeria.

The Minister added that the UK is keen to improve energy access in Nigeria and help the country to keep up her COP26 commitments.

The UK is committed to increasing both renewable energy and energy access in Nigeria, driving clean, sustainable, and resilient growth,” Ford said.

This transition is particularly exciting as it brings together UK government support with the institutional capital, which is essential to growing the sector at scale.”

Nigeria’s Minister of State for Power, Jeddy Agba, who received the money on behalf of his country, thanked the UK government for its active support towards Nigeria’s effort in achieving its carbon neutrality target in 2060.

Mr. Agba disclosed that Nigeria is currently implementing its clean energy transition scheme with a number of projects in Lagos, Borno, and Kano states.

The country has also developed investor-grade data for project development and a US$550 million facility, thus emerging with the largest clean energy access program across the continent of Africa.

It is important for international partners to start contemplating on how best they can collaborate with these institutions to unlock local currency financing of off-grid development on a large scale,” Agba said.

Agba further said that while efforts had been made towards unlocking private sector activity in the clean energy transition, lack of access to local currency has continued to pose a major challenge to such investors.

Between 2014 and 2022, the UK has provided more than £80 million into the renewable energy sector in Nigeria, including grants, technical assistance, and leading support through advisory programs such as UK Nigeria Infrastructure Advisory Facility.

It also provided over US$50 million for the establishment of InfraCredit in 2016, which provides local currency guarantees for renewable energy projects in Nigeria.

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