Nigeria Finalizes $1.5bn US-Backed Loan For Solar Projects

Nigeria has received a $1.5 billion loan from the US-EXIM Bank to build solar power infrastructure in ten different places around the country.

This was announced to State House journalists by Adam Cortese, Chief Executive Officer, SUN Africa LLC, USA, during a meeting of a corporate delegation with the President, Major General Muhammadu Buhari (retd.), at the Presidential Villa in Abuja on Thursday. Cortese stated that the government-to-government credit facility will have a 20-year concession term.

He said, “This is government-to-government financing. It’s built upon the success that we’ve had in Angola recently, where we’ve delivered roughly $2.6bn of solar PV storage and transmission capacity.

I think the important point to note here is that yes, it’s a government-to-government loan, from the US-EXIM Bank to the government of Nigeria, but it’s being done at a concessional rate, over a 20-year tenure, which is extremely attractive.

assets. ” “What’s unique about this model is that NDPHC is going to own its assets.” So, it’s going to own its generation base and our project will deliver a low-Levelized cost of electricity, which will not only allow them to pay back the loan from EXIM Bank but generate a profit on top of it. “

Receiving the delegation earlier, President Buhari declared that Nigeria’s drive to integrate solar power into the country’s energy supply would increase access to electricity in both underserved and unserved communities. This was contained in a statement issued by the Special Adviser to the President.

Femi Adesina, titled “Nigerians’ energy policy prioritises rapid integration of solar power, President Buhari says.” Buhari said his regime had embarked on several reforms to revive the country’s energy sector and improve energy access nationwide.

He applauded the interest of Sun Africa in investing in Nigeria’s power sector, vowing that the Federal Government would remain committed to collaborating with the private sector to improve energy access and create jobs and industrial development.

The President listed some of the reforms embarked upon by this administration to address Nigeria’s energy needs; the recent signing of the Nigeria Climate Change Bill in November 2021; the implementation of the Power Sector Recovery Programme with the World Bank; and the Nigeria Electrification Program aimed at enhancing energy access to remote communities.

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