Germany, EU Commit €24.5m to Nigeria’s Power Reforms

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Prof. Chinedu Nebo, Power Minister

•       NLNG gets $360m Korean loan
Chineme Okafor
 
The German Government and the European Union (EU) have expressed commitment to Nigeria’s efforts at liberalising her power sector in the ongoing reform exercise.

Both Germany and EU would to this end, commit a cumulative sum of €24.5 million within the framework of the Nigerian-German Energy Support Programme (NGESP) to foster Nigeria’s efforts in advancing her energy policy and regulatory environment, energy mix with focus on rural renewable electrification as well as energy efficiency and respective institutional capacity development.

Accordingly, the commitment which seeks to address Nigeria’s core technical and structural challenges with regards to efficient energy delivery across the country will see Germany put in €9 million while EU will contribute €15.5 million to bring it to €24.5 million.

Under the programme which will be implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) for an initial three years- that is, 2013 to 2015, the government’s efforts at stimulating private investments in Nigeria’s power sector through fair competition will receive improved support especially in formulating priority measures to drive up investment in renewable energies.

Also, to be eminently considered within the framework is the improvement of energy efficiency within the power sector by way of strengthening regulations and policies on substandard and energy wasting electrical installations and components imported into the country.

Minister of Power, Prof. Chinedu Nebo, in his address at the inaugural workshop for NGESP yesterday in Abuja, explained that technical support was geared to drive Nigeria’s efforts to diversify her energy mix.

Nebo said: “The level of renewable energy implementation in Nigeria is minimal but being endowed with significant quantities of renewable energy sources like the sun, wind, biomass and dams for hydropower generation, Nigeria is taking various measures in implementing renewable energy and energy efficiency programmes to increase our energy mix.

“The Nigerian-German technical cooperation support programme is a welcome relief. It will provide a strong platform for efficient and effective take-off of renewable energy/energy efficiency programmes in Nigeria and its foundation will encourage private sector investments in renewable energy by supporting the government with policy regulations and cross-cutting training.”

Earlier in her remarks, the Country Director of GIZ, Mrs. Jacobi Sambou, stated that the programme would separately support the National Power Training Institute of Nigeria (NAPTIN) in developing new courses to satisfy the needs of Nigeria’s reformed power sector to position it as a commercially sustainable training entity.

Meanwhile, South Korean Export-Import Bank yesterday announced a $360 million loan to the Nigeria Liquefied Natural Gas (NLNG), gas exporter of the Nigerian National Petroleum Corporation (NNPC). The loan would have a maturity of 9.5 years.

The transaction was under the state-owned South Korean bank's programme of providing export credit and guarantee programmes to support Korean exporters.

In January, the NLNG, a leading liquefied natural gas exporter, signed a contract with two South Korean shipyards -- Samsung Heavy Industries Company and Hyundai Heavy Industries Company for six LNG vessels worth $1.3 billion, Yonhap News reported.

The South Korean bank said an additional $360 million in loans would come jointly from Korea's state-run trade insurance firm K-sure and Korea Finance Corporation. The loan would allow Korean exporters to win more deals in Africa, it added.

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