Nigeria has secured a $1.5 billion loan from the US-EXIM Bank to boost solar power infrastructure in 10 different locations in the country.
Making this disclosure Thursday was the Chief Executive Officer (CEO) of SUN Africa LLC, USA.
Adam Cortese, while speaking with newsmen after a meeting of a delegation of the company with President Muhammadu Buhari at the State House, Abuja.
He explained that the loan is a government to government facility on a concessional rate of over 20 years.
According to him, the Niger Delta Power Holding Company (NDPHC) will own the assets which he said will not only generate low cost electricity but will enable the company to pay back the loan.
His words: “Once again, this is government-to-government financing. It’s built upon the success that we’ve had in Angola recently, where we’ve delivered roughly $2.6 billion of solar PV storage and transmission capacity.
“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 being done on a concessional rate; over 20-year tenure, which is extremely attractive.
“What’s unique about this model is that NDPHC is going to own its own assets. So, it’s going to own its own generation base and our project will deliver a low levelized cost of electricity, which will not only allow them to pay back the loan from EXIM Bank, but generate a profit on top of it.”
Speaking while receiving the delegation, President Buhari declared that the rapid integration of solar power into the country’s energy mix will lead to an increase in electricity access to underserved and unserved communities.
He said his administration has embarked on several reforms aimed at revitalizing Nigeria’s energy sector aimed at improving energy access to communities across the country.
The President commended the interest of the US developer 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, creating jobs and industrial development.
Highlighting some of the reforms embarked upon by this administration to address Nigeria’s energy needs, the President listed the recent signing of the Nigeria Climate Change Bill in November 2021, the implementation of the Power Sector Recovery Programme with the World Bank and the Nigeria Electrification Program aimed at enhancing energy access to remote communities.