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


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

The loan, a government-to-government facility, comes on a prime rate over a 20-year term.

Adam Cortese, The CEO of SUN Africa LLC, USA, who gave the information on Thursday, said the Niger Delta Power Holding Company (NDPHC) would own the assets, which would not only generate low-cost electricity, but also allow the company to repay the loan.

“Again, this is government-to-government funding. It builds on our recent success in Angola, where we provided approximately $2.6 billion of solar PV storage and transmission capacity,” Cortese told reporters after a meeting of the society’s delegation with President Muhammadu Buhari at the State House, Abuja.

“I think the important point to note here is, yes, it’s a government-to-government loan, from the US-EXIM Bank to the government of Nigeria, but it’s done at a concessional rate; a term of more than 20 years, which is extremely attractive,” he said.

Cortese said that the The particularity of the model is that the NDPHC would own its own assets.

“So he’s going to own his own generation base and our project will provide low levelized cost of electricity, which will allow them not only to repay the loan from EXIM Bank, but to generate a profit on top of that,” he said. he declared. .

Speaking at the delegation reception, Buhari said the rapid integration of solar energy into the country’s energy mix would lead to increased access to electricity for underserved and unserved communities. . He said his administration had embarked on several reforms aimed at revitalizing Nigeria’s energy sector and improving energy access for communities across the country.

The President hailed the US developer’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 electricity. ‘industry.

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

He added that the Presidential Power Initiative with Siemens aims to achieve end-to-end alignment across the entire power value chain.

“Initiatives like these will go a long way towards building local capacity through technology transfer and alleviating transmission constraints through the generation and distribution of electricity within the franchise area of ​​local distribution companies, thus facilitating the kidnapping,” Buhari said.

He said finance and energy ministers and other government agencies would remain available at all times to ensure the project is completed as part of the government’s drive to achieve net zero emissions by 2050.

Speaking earlier, Goran Rajsic, founder of Sun Africa LLC, USA, said the renewable infrastructure company hopes to provide solar power to multiple locations across the country, just as it did in Angola, with funding through the US EXIM Bank.

Rajsic pledged that his organization, in conjunction with other major energy companies, had the capacity to do what Nigeria needed in the field of energy.

He described what Sun Africa LLC, USA had in mind as “an energy and infrastructure partnership that will revolutionize both the industrial and agricultural sectors.”

Chiedu UgboManaging Director/CEO of Niger Delta Power Holding Company (NDPHC), said the company would use the loan facility to supply solar power to 10 sites, starting with five.


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