- Britain provides Nigeria with $13.6million assistance for renewable and climate change projects.
- Nigerian sovereign fund aims to deliver 250-500MW of renewable energy capacity.
- Britain has provided more than £80 million in grants and loans to Nigeria’s renewable energy sector.
Britain intends to increase investments in renewable and climate change projects in Nigeria and provide $13.6 million in assistance, said Vicky Ford, Minister for Africa, during her first visit.
Nigeria’s power demand vastly outstrips supply, forcing its 200 million people to either go without or rely on expensive fossil-powered generators. Nigeria can generate an estimated 7,000MW; however, due to poor infrastructure, gas supply issues, and water scarcity, only slightly more than half of that is delivered to the national grid.
Ford stated that the financing provided in collaboration with Nigerian credit guarantee firm InfraCredit would help mobilize domestic pension and insurance investments while lowering the risk for projects aimed at off-grid and low-carbon ventures. “This transaction… brings together UK government support with institutional capital, both of which are required to scale the sector,” Ford said on Monday.
According to the statement, the Nigerian sovereign fund, a co-investor in InfraCredit, aims to deliver up to 250-500MW of clean energy capacity in Nigeria. Nigeria has over ₦12 trillion in institutional financing held in pensions, insurance, and wealth funds, which is invested in government securities or occasionally in Nigerian shares. However, infrastructure funds account for approximately 0.5% of pension assets in Nigeria, which is less than the 4% limit.
As the world looks to transition to clean energy, Ford stated that the British financing would expand opportunities for the private sector and provide affordable long-term funding from local investors to off-grid and low-carbon projects. According to a paper published by the British High Commission, Britain has provided more than £80 million in grants and loans to Nigeria’s renewable energy sector.