Nigeria Sovereign Wealth Investment Authority, NSIA , the International Finance Corporation, and the IFC have signed a financing and technical cooperation agreement to develop renewable energy projects in the country. The partnership agreement was signed by both parties at the Transcorp Hilton Hotel Abuja on Friday, November 17, 2023.
At the same occasion, the Nigeria Sovereign Wealth Fund formally launched its Renewables Investment Platform for Limitless Energy, RIPLE.
The new energy investment platform, RIPLE, results from the partnership between NSIA and IFC. It aims to finance and provide technical support for significant and viable renewable energy projects to ameliorate the country’s energy insufficiency. The partners are putting up at least $500m into RIPLE.
Giving insight into the benefit of the partnership, NSIA managing director Aminu Umar-Saddiq said: “We (NSIA) are looking at diesel displacement, solar energy projects and PV (photo voltaic) production.”
The collaboration between NSIA and the IFC clearly demonstrates NSIA’s dedication to sustainable energy transition in Nigeria. As the custodian of economic resources for current and future generations of Nigerians, tackling climate risks is integral to NSIA’s objectives. We recognize the many opportunities it offers for innovation, growth, and economic transformation,” Umar-Saddiq said.
The pilot renewable power project undertaken by NSIA is the $25m solar power project located in the Tokarawa Industrial area in Kano State. The project would generate 70 megawatts of electricity for various uses.
“We are excited to partner with the IFC to advance the transition to energy-efficient solutions in Nigeria. The IFC is an institution that shares our commitment to sustainable development. Our focus is to empower the customers with a resilient and environmentally friendly energy solution that will optimize productivity and reduce the carbon footprint,” said Yusuf Umar, progamme manager, RIPLE.
Commenting on the IFC-NSIA partnership on renewable energy, Don Croft, Regional manager, Africa, and Head of Renewable Energy , IFC said : ” reliable electricity is crucial for improving quality of life, productivity, and economic growth in Nigeria. IFC is pleased to collaborate with our longstanding partner, NSIA, to develop and implement the first phase of this innovative energy solution, which will reduce greenhouse gas emissions and reliance on fossil fuels. We hope RIPLE will deliver a reliable power supply for commercial, residential, and industrial uses.”
Nigeria’s worrisome shortfall in power supply, which adversely affects economic output and growth, requires more investment in various energy sources.
The NSIA is spearheading the country’s move to develop renewable energy sources and reduce the country’s carbon footprint while assisting in mitigating our energy gap. Nigeria generates about 4,500mw of electricity whereas demand is estimated at over 10,000mw.