……..Britain provided over £80m in grants and loans to Nigeria’s renewable energy sector
Britain has announced an intension to increase investments in renewable and climate change projects in Nigeria and provide $13.6million in assistance. British minister for Africa, Mrs. Vicky Ford made this known on Monday during her maiden visit to Nigeria.
Nigeria, with a population of over 200million people is recorded with a demand for power that outstrips supply, a situation that has forced citizens and locations to go without light for weeks and months. A good number of Nigerians 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.
The British minister said her government is collaborating with Nigerian credit guarantee firm, InfraCredit, who would provide the financing that would help mobilize finance for 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.
The Nigerian Sovereign Fund, a co-investor in InfraCredit, according to plan, will deliver up to 250-500mw of clean energy capacity in Nigeria.
Analysts 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.
Ford said 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.
Unconfirmed British High Commission sources said Britain has provided more than £80 million in grants and loans to Nigeria’s renewable energy sector.
By Chibisi Ohakah, Abuja
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