Vicky Ford, United Kingdom’s minister for Africa, says the UK will support Nigeria with N5.6 billion (£10 million) to help the country focus on off-grid and low carbon energy projects.
Ford made the pledge on Monday in Abuja during her first visit to Nigeria.
She said the financing will support Nigeria in achieving its COP26 commitments.
“I am very pleased to announce £10 million of UK aid funding today, that is N5.6 billion,” Ford said.
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“The £10 million will be blended to de-risk transactions and therefore mobilise domestic institutional investment from local pension funds, insurance firms and other local institutional investors.
“This will help scale up domestic financing for eligible off-grid clean energy infrastructures, such as solar mini-grid and home systems, clean cooking infrastructure and SME cold storage infrastructure in Nigeria.
“The UK is committed to increasing both renewable energy and energy access in Nigeria, driving clean, sustainable and resilient growth.”
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Ford said the financial aid will, among other things, support the implementation of Nigeria’s nationally determined contributions (NDCs), its energy transition agenda and plans to increase energy access using renewable energy.
Goddy Agba, minister of state for power, said Nigeria’s energy transition plan has highlighted the need for an additional $410 billion in investments over the next 40 years.
The minister said efforts towards unlocking private sector activities in the clean energy transition is hampered by “one major challenge” which is “private sector access to local currency financing”.
He said: “It is important for international partners to start contemplating on how best they can collaborate with these institutions to define blended finance models that combine local institutional capital with foreign currency dominated support to unlock local currency financing of off-grid development on a large scale.”
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