The United States Export Import Bank has approved a loan of $1.5bn to boost solar power infrastructure in Nigeria.
The Chief Executive Officer of SUN Africa LLC, USA, Adam Cortese, disclosed this while speaking with newsmen after the meeting of delegation of the company with President Muhammadu Buhari.
Cortese explained that the loan was a government-to-government facility given based on a concessional rate of over 20 years which is projected to boost solar power infrastructure in 10 different locations in the country.
Cortese stated, “This is government-to-government financing. It’s built upon the success that we’ve had in Angola recently, where roughly $2.6bn of solar PV storage and transmission capacity has been delivered.
“The US-EXIM Bank has approved the sum of $1.5bn loan to boost the Nigeria solar power infrastructure which is a government-to-government loan, meaning from the US-EXIM Bank to the government of Nigeria, but it’s being done on a concessional rate; over 20-year tenure, which is extremely attractive.”
He further explained that the ownership of the assets would be the Niger Delta Power Holding Company, adding that low cost electricity will be generated to enable the company pay back the loan.
President Muhammadu Buhari commended the interest of the US Bank to invest in Nigeria’s power sector, pledging that the federal government would remain committed to collaborating with the private sector in improving energy access, jobs creation, and industrial development.
Buhari said his administration has embarked on so many reforms in addressing the Nigeria’s energy needs, while highlighting some of the reforms.
“Signing of the Nigeria Climate Change Bill in November 2021, implementation of the Power Sector Recovery Programme with the World Bank.
“Nigeria Electrification Programme aimed at enhancing energy access to remote communities.
Buhari emphasized that Initiatives like these will go a long way in developing local capacity through technology transfer and relieving transmission constraints through the generation and distribution of electricity in the local Distribution Companies.
He added that the Presidential Power Initiative with Siemens is aimed at achieving end-to-end alignment across the electricity value chain.