The UK government announces a $13.5 million financial aid to support the Nigerian energy sector. Nigeria’s power demand exceeds supply by a vast amount. Two hundred million residents either have no electricity or are forced to depend on costly, environmentally toxic generators.
Nigeria can produce around 7,000 MW of power. However, it is unable to because of the lack of a robust infrastructure, gas supply problems, and water shortages that only reach over half of the national grid.
The UK aims to increase climate-energy projects, improve energy access, and support Nigeria’s COP26 commitments. The funding helps boost off-grid clean energy infrastructure financings like solar-mini-grid & home systems, clean cooking infrastructure, and cold storage infrastructure in Nigeria. The UK diligently supports Nigeria’s determination to attain its carbon neutrality target in 2060.
In addition, the funding helps Nigerian investors focus on low carbon energy and support off-grid, low-carbon energy projects. It will combine with the de-risk transactions and generate domestic institutional investment from local pension funds, insurance firms, and other local institutional investors.
The Government of the UK is keen to strengthen existing efforts by both countries to build on the UK-Nigeria partnership and reinforce strong security, anti-corruption, and economic ties. The UK is dedicated to boosting renewable energy, energy access, driving clean, sustainable, and resilient growth in Nigeria.