Quick Read: President Bola Tinubu secured $70 million from the IFC to fund Nigeria’s mini-grid renewable energy projects. The NNPCL will also begin constructing five mini-LNG plants in Ajaokuta to boost power generation and clean cooking access. A partnership with BUA Group will further expand domestic gas utilization. These initiatives align with Nigeria’s goal of achieving universal energy access by 2030.
Funding for Nigeria’s Renewable Energy Expansion President Bola Tinubu has secured $70 million in funding from the International Finance Corporation (IFC) to support mini-grid projects in Nigeria. The announcement was made at the Africa Energy Summit, which concluded on Tuesday in Dar es Salaam, Tanzania.
The funding is part of a $1 billion facility established by the IFC, with contributions from the Rockefeller Foundation and the African Development Bank. According to IFC Managing Director Makhtar Diop, Nigeria is the first country to benefit from this initiative.
Official Signing and Project Implementation During a session at the summit, Diop confirmed the agreement, stating, “Yesterday, President Tinubu signed the first project using this facility. We signed for $70 million.”
He emphasized that the fund is specifically designed to finance renewable energy projects, supporting Nigeria’s push toward clean energy solutions.
NNPCL to Construct Five Mini-LNG Plants in Ajaokuta In a related development, the Nigerian National Petroleum Company Limited (NNPCL) is set to begin the construction of five mini-LNG plants in Ajaokuta, Kogi State. The groundbreaking ceremony is scheduled for Thursday, with President Tinubu expected to participate.
List of New Mini-LNG Plants:
- PRIME LNG
- NGML/Gasnexus LNG
- BUA LNG
- Highland LNG
- LNG Arete
These projects aim to enhance power generation and expand access to Liquified Petroleum Gas (LPG) as a cleaner cooking fuel.
Strategic Partnership with BUA Group NNPCL, in collaboration with BUA Group, has also received a license from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for the development of another mini-LNG plant in Ajaokuta.
As part of the initiative to boost domestic gas utilization, NNPC Gas Marketing Limited (NGML) and BUA Group signed a shareholders’ agreement for a 45mmscf Mini-LNG Plant. This project will help supply gas to industries and businesses, strengthening Nigeria’s energy infrastructure.
Nigeria’s Commitment to Energy Security These projects align with Nigeria’s goal of achieving universal energy access by 2030. The government has been taking steps to increase gas distribution and expand access to clean energy sources.
According to Nairametrics, the NMDPRA recently awarded 10 Gas Distribution Licenses (GDLs) to six companies. These licenses cover a total gas distribution capacity of approximately 1.5 billion standard cubic feet per day, spanning over 1,200km of pipeline networks and 500 customer stations across Nigeria’s six geopolitical zones.
With these developments, Nigeria is making significant progress in enhancing energy security, supporting industrial growth, and expanding access to clean and affordable energy solutions.
