Nigeria secures $1.5 billion US-backed loan for solar projects

Nigeria has secured a $1.5 billion loan facility from US-EXIM Bank to provide solar energy infrastructure in 10 different locations across the country.

Managing Director of SUN Africa LLC, USA, Adam Cortese revealed this to State House correspondents after a meeting of a delegation from the company with the Chairman, Major General Muhammadu Buhari (Retired), at the Presidential Villa in Abuja on Thursday.

Cortese noted that the government-to-government loan facility would cover a concession period of 20 years.

He said, “This is government-to-government funding. It builds on our recent success in Angola, where we provided approximately $2.6 billion of solar photovoltaic storage and transmission capacity.

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

“What is unique about this model is that the NDPHC will own its own assets. Thus, he will own his own production base and our project will provide low cost of electricity, which will allow them not only to repay the loan from EXIM Bank, but to generate a profit in addition.

Receiving the delegation earlier, President Buhari said Nigeria’s drive to integrate solar energy into the country’s energy supply would increase access to electricity in underserved and unserved communities.

This was in a statement released by the president’s special adviser

Media and Publicity, Femi Adesina, titled “Nigerians’ Energy Policy Prioritizes Rapid Integration of Solar Power, Says President Buhari”.

Buhari said his regime had embarked on several reforms to revive the country’s energy sector and improve energy access across the country.

He applauded SUN AFRICA’s interest in investing in Nigeria’s power sector, pledging that the Federal Government would remain committed to working with the private sector to improve energy access, create jobs and expand the economy. industry.

Listing some of the reforms undertaken by this administration to meet Nigeria’s energy needs, the President listed the recent signing of the Nigeria Climate Change Bill in November 2021, the implementation of the Energy Sector Recovery Program electricity with the World Bank and Nigeria’s electrification program to improve energy access for remote communities.