The Nigerian Government and the United state Trade and Development Agency have signed a $1.1million dollar grant with Nigerian for the development of electricity.
The pact was signed during the ongoing Nigerian International Petroleum Summit holding in Abuja, the Federal Capital Territory.
The summit titled; “Widening the integration Circle, Technology, Knowledge, and Sustainability Partnership.
The Director, U.S Trade and Development Agency, Mr Thomas Hardy expressed optimism in the development, saying the grand was a demonstration of the American commitment towards improving the Nigerian power sector.
He added Nigeria being the populous black nation on the African continent, the American government is proud of investing in the Nigeria power sector to sustain its economic development.
According to Hardy, the fund will be utilised for a feasibility study of the Independent Power Project (IPP) and other subsequent infrastructure in the energy sector.
He disclosed that it is a part funding for the NNPC Abuja IPP modelled to generate 1,350mw, while the money will be released in trenches depending on the priority of a particular project and the General Electric (GE) will provide the technological know-how of the work.
The Director reiterated that his agency is committed to partnering with the Nigerian government to ensure electricity is accessible to all Nigerians.
Meanwhile, the Group Managing Director of the Nigerian National Petroleum (NNPC), Malam Mele Kyari, said that the Nigerian energy deficiency could be corrected with partnership among stakeholders.
He assured the participants that the fund will be judiciously utilised, saying that the oil sector is capable of producing Nigeria power challenge if things are put in place.
Kyari added, we have gas in abundance and the infrastructure to harness it is what is missing, with this fund he promised Nigerians will have a cause to smile again.
Also speaking was, the U.S. Ambassador to Nigerian, Miss Mary Leonard, said the grant would help to open up the energy sector in the country.
In her statement; ” The grant will provide the in-depth technical economic and financial analysis necessary to develop a major new source of energy and exciting one thousand three hundred fifty megawatts natural gas power plant here in Abuja.
According to her, she is excited about the project for a variety of reason and the overall of it will play in the interest of Nigerians economic development.