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Nigerian govt, EU sign £17.9m off-grid electricity deal

Published

3 weeks ago

November 2, 2024

Nigeria’s off-grid electricity initiative will get £17.9 million in funding from the central government, the European Union, and the German Government, according to an agreement they signed.

The initiative was started as part of the Nigerian Energy Support Program’s third phase, and its goal is to encourage investments in energy efficiency, renewable energy, and rural electrification.

According to the EU, the scheme will link 30,000 people to clean cooking gas and provide electricity to 154,000 people. In the third phase, eight megawatts of electricity will be produced.

Co-funded by the European Union and the German Federal Ministry for Economic Cooperation and Development, the NESP was put into operation in 2013 as a technical assistance program run by the Federal Ministry of Power and the Deutsche Gesellschaft für Internationale Zusammenarbeit.

“Achieving a cleaner future is the business of all stakeholders,” stated Inga Stefanowicz, Head of Section Green and Digital Economy at the European Union Delegation to Nigeria and ECOWAS, during the NESP III inauguration and steering committee meeting.

According to her, the EU has not only persisted in helping the Nigerian government fulfil its ambitions for energy security but has also helped it move towards a sustainable energy future by increasing the proportion of renewable energy in its electrical mix.

“Solar installation for health projects, we support and work hand in hand with state governments. This is part of our key objectives, in fact, and at the centre of our partnership with Nigeria. Clean and digital economy and part of our global gateway strategy that works for the people and the planet.”

Johannes Lehne, the deputy ambassador of the Federal Republic of Germany’s Embassy, also spoke at the inauguration and reiterated the German government’s commitment to helping Nigeria meet its energy transformation goals.

He said, “Technologies and investments for renewable energy and energy efficiency will be key for diversifying Nigeria’s energy mix and decarbonising the five critical sectors identified in the Energy Transition Plan.

“The third phase of NESP was commissioned by the German Federal Ministry for Economic Cooperation and Development with €8.9m Euros in May this year.

“The EU has recently commissioned an additional €9m, which increases the total budget of the NESP programme to €17.9m. This shows Germany’s and its partners continued commitment to support Nigeria’s set targets in the Energy Transition Plan.”

Related Topics:European Union Featured Nigeria

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IMF mission concludes 4th loan program assessment in Egypt

Published

3 days ago

November 22, 2024

Ifeoluwa Dada

Following the completion of a recent visit to Egypt, the International Monetary Fund (IMF) has announced that its mission had achieved significant strides in policy talks aimed at concluding the fourth review of the IMF loan program.

The review is the fourth in Egypt’s most recent 46-month IMF loan program, which was authorised in 2022 and increased to $8 billion this year following an economic crisis characterised by high inflation and chronic foreign exchange shortages. It may unleash more than $1.2 billion in financing.

Along with reaffirming its commitment to maintain a flexible exchange rate system, the IMF stated that Egypt “has implemented key reforms to preserve macroeconomic stability,” including the unification of the currency rate that facilitated imports.

Earlier on Wednesday, Egypt’s Prime Minister Mostafa Madbouly said Cairo has asked the IMF to modify the targets for the programme not only for this year, but for its full duration, he added without giving more details.

“Discussions will continue over the coming days to finalize agreement on the remaining policies and reforms that could support the completion of the fourth review,” the IMF added in its statement.

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Kenya seeks $750m from World Bank, obtains $200m from AfDB— Official

Published

5 days ago

November 20, 2024

Ifeoluwa Dada

The head of debt management for the finance ministry told Reuters that Kenya had obtained a $200 million loan from the African Development Bank (AfDB) and was negotiating a fresh $750 million loan with the World Bank.

After being forced to abandon proposed tax rises costing more than 346 billion shillings ($2.68 billion) in June due to fatal demonstrations, the East African nation’s administration, which has been grappling with significant debt, has been frantically seeking fresh funding.

The Finance Ministry’s public debt management office director general, Raphael Owino, told Reuters that the IMF’s October clearance of the seventh and eighth reviews, which opened the door for a $606 million loan tranche, had aided the ministry’s talks for more loans.

“The World Bank is coming on board, riding on the back of IMF receipts,” Owino said. “The AfDB is already on board.”

The discussions for more assistance, which came under the World Bank’s “Development Policy Operations” (DPO) with the government, were confirmed by a representative at the organization’s Kenya office.

“The amount of the current (loan) is yet to be determined. The amount will also depend on the implementation of the policy reforms agreed upon,” the spokesperson told Reuters, adding that past DPO loans averaged about $750 million.

In May, the World Bank approved the latest round of DPO loans, totalling $1.2 billion.

According to a statement made last month by Finance Minister John Mbadi, Kenya has set a foreign borrowing goal of 168 billion shillings for the fiscal year ending in June 2025.