The United States of America has disclosed a funding package of $7.5 million for Nigeria’s power sector.
This is in addition to another $1 billion investment in the pipeline, under the Power Africa initiative.
Power Africa coordinator, Mr. Andrew Herscowitz, made the disclosure on Tuesday (yesterday) at the opening of a two-day distribution company workshop in Abuja.
According to Herscowitz, functional power distribution companies are critical to the development of the country.
Power Africa was launched in 2013 to increase electricity access in sub-Saharan Africa by adding more than 30,000 megawatts of cleaner, more efficient energy.
Herscowitz said: “Since Power Africa was launched, USTDA has committed approximately $6.5 million in funding for 10 activities supporting Nigeria’s energy sector, which could leverage up to $2.7 billion in investment.
“Fifty million dollars in financing from the Oversea Private Investment Corporation to Lumos to scale up it’s off-grid solar power service to about 200,000 Nigerian homes and businesses, (and) $1 billion in project pipeline.”
Power Africa has supported power companies in the country to the tune of $100 million capital expenditure credit enhancement facility with a corresponding $6.5 million in technical assistance and another $1.5 million for limited commodity to turn around the DISCOS.
“Nigeria, like any country, needs to see capital flowing through the entire energy value chain, if there is no money for distribution, there’s no payment to electricity generators, and very little incentive for private sector investment.
“I want to stress that Power Africa will continue our work in Nigeria and across sub-Saharan Africa to increase access to electricity. The U.S government’s commitment to Africa’s growth and development remains strong, as was outlined in last year’s bipartisan electricity Africa Act.”
Business5 days ago
Business6 days ago
Politics4 days ago
Trending Stories7 days ago
Latest1 week ago
Business3 days ago
Sports7 days ago