Africa Biz Construction and Business News
Nigeria Off-Grid Energy Access Fund Receives $58M from AfDB
September 11, 2018
The African Development Bank has authorized the release of $58 million for the Off-Grid Energy Access Fund (OGEF) in Nigeria.
This major investment to support off-grid energy development in Nigeria comes from the African Development Bank (AfDB)’s Facility for Energy Inclusion (FEI). Just established in July 2018 at the Africa Energy Market Place (AEMP), the FEI is a $500 million debt facility targeted at encouraging capital market activities to help nations encourage the use of alternative energy approaches.
The fund is backed by such diverse investors as the United Kingdom’s Department for International Development (DiD), the Shell Foundation from the Netherlands, and the United States backed Power Africa program.
As Amadou Hott, Vice-President for Power, Energy, Climate Change and Green Growth for the African Development Bank , said, this investment is part of a bank initiative to encourage more funds being made available for decentralized energy companies. Those strategies recognize that much of Africa still remains disconnected from the main power grids, and only by targeting the means of decentralizing energy acquisition -- such as via local solar and wind projects -- can the continent ensure energy is available for everyone. As Hott said in a recent interview on the topic, “We will keep pushing the ‘off-grid revolution in the African continent to achieve universal energy access by 2025.”
The current $58 million being provided to Nigeria is the first close for the Off-Grid Energy Access Fund.