The World Bank and the United States Export-Import (EximBank) have agreed to invest about $3biliion in the realization of Nigeria’s energy transition plan. The two International Organisations made the commitment today during the official global launching of the Energy Transition plan by the Nigerian Vice President, Prof. Yemi Osinbajo. Nigerian Country Director to the World Bank, Shubham Chaudhuri, disclosed the international commitment today saying $1.5 billion would be released for the Nigerian energy transition plan soon.
According to Chaudhuri, “We plan to commit over $1.5 billion towards the Energy Transition Plan on renewable energy, on power sector reforms, and potentially hydropower, on clean cooking, and wherever opportunities arise,”.
He explained that “The policy and institutional reforms that will be necessary are also part of the agenda and we hope to be able to provide support for the fundamentally imperative of energy access but in a way that is consistent with the energy transition, what I think of as the NEAT imperative.
Chaudhuri reiterated that Nigerian Energy Access and Transition (NEAT) is critical to the development of the country and the global bank is standing tall to give its support.
Speaking during the occasion, the Chief Executive Officer, CEO, of The Sun Africa, a renewable energy solution Company, Mr. Adam Cortese, revealed that the deal was at its final stage with the US EXIM Bank on the $1.5 billion that will be released soon to finance the project.
According to Cortese, “The launch of Nigeria’s Energy Transition Plan has further accelerated our efforts, proving Nigeria to be fertile grounds for investments in the sector. We are in the final stages of discussion with US EXIM Bank on a USD 1.5 billion financing package,”
He applauded the Nigerian government for taking the initiative on the African continent while promising his team will work hard to actualize it.
Addressing the crowd, Osinbajo disclosed that the project requires a significant scale of resources which was currently pegged at $410 billion by the year 2060.
Osinbajo revealed that the Nigerian government has already set up a working committee who have since started engaging with partners to secure an initial $10 billion support package ahead of COP27.
Recall during a COPA26 last year President Muhammadu Buhari announced Nigeria’s ambition to achieve net-zero by 2060 drawing on insights from the country’s Energy Transition Plan which was developed through the Energy Transition Commission to chart out Nigeria’s unique energy transition pathway.
The initiative seeks to achieve the country's universal access to energy by 2030 and a carbon-neutral energy system by 2060, at the same time providing enough energy to power the industry and other productive uses.
Meanwhile, the plan is supported by Sustainable Energy for All and the COP26 Energy Transition Council (ETC).
