Strategic Partnership Aims to Boost Clean Energy Infrastructure in Nigeria

Folalumi Alaran in Abuja

The Rocky Mountain Institute (RMI) and the Infrastructure Corporation of Nigeria (InfraCorp) is set to partner to accelerate Nigeria’s clean energy infrastructure strategy.

A statement Signed by the Chief Executive Officer, Nigeria Climate Innovation Centre, Bankole Oloruntoba said, “ The Memorandum of Understanding (MoU) was officially announced during the 29th Nigeria Economic Summit Group (NESG), marking a pivotal collaboration to address the nation’s energy transition challenges.

“ The partnership, inked on the sidelines of the NESG, focuses on establishing a Project Preparation and Development Facility (PPF) and crafting climate finance initiatives. The primary objective is to mobilize long-term local currency funding for competitive clean energy projects and significantly contribute to Nigeria’s energy transition goals.

“ At the core of the partnership is a commitment to bridge Nigeria’s energy transition gap and expedite the deployment of clean energy projects. A specific emphasis is placed on building local capacity to unlock and accelerate climate finance, with the ultimate goal of maximizing both adaptation and mitigation outcomes.”

RMI Managing Director of Catalytic Climate Capital and the Global South, Ije Ikoku Okeke, emphasized the alignment of the partnership with RMI’s Catalytic Climate Capital (C3) program. The program aims to support the development of 10 gigawatts of clean energy over three years in the Global South and mobilize $15 billion from the private sector for the energy transition. This strategic focus reinforces the commitment to sustainable energy development in Nigeria.

Managing Director/Chief Executive Officer of InfraCorp, Lazarus Angbazo, highlighted the significance of the partnership in supporting the development of bankable and sustainable national infrastructure projects in Nigeria’s renewable energy sector. The collaboration is expected to extend to project development finance and financial market initiatives, enabling InfraCorp to provide or mobilize financial resources for stimulating economic activity through clean energy solutions.

The partnership assumes critical importance in the context of Nigeria’s persistent electricity supply challenges. Despite being Africa’s most populous nation with abundant natural resources, Nigeria struggles to provide reliable electricity to its citizens. Over 92 million people lack access to electricity, and frequent power outages impede economic growth and business expansion.

As of 2022, Nigeria pledged to achieve 30 gigawatts of renewable energy capacity by 2030, with renewables making up 30% of the nation’s energy mix. The Renewable Energy Roadmap for Nigeria, developed in collaboration with the Energy Commission of Nigeria, underscores the need for substantial investments to realize these ambitious targets. The roadmap envisions a reduction in natural gas consumption by 40% and a 65% decline in oil requirements by 2050, requiring an estimated budget of $1.24 trillion.