HomeUncategorizedFG and EU Sign £17.9m Power Development Agreement for Off-Grid Project

FG and EU Sign £17.9m Power Development Agreement for Off-Grid Project

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The Federal Government of Nigeria has signed a significant agreement with the European Union and the German Government to provide £17.9 million for an off-grid electricity project. This initiative is part of the third phase of the Nigerian Energy Support Programme (NESP), aimed at boosting investments in renewable energy, energy efficiency, and rural electrification.

According to the EU, this program is expected to benefit 154,000 people by improving their access to electricity and connecting an additional 30,000 households to clean cooking gas. The third phase aims to generate eight megawatts of electricity, significantly enhancing energy availability in underserved areas.

The NESP was established in 2013 as a technical assistance initiative co-funded by the EU and the German Federal Ministry for Economic Cooperation and Development, with implementation support from the Deutsche Gesellschaft für Internationale Zusammenarbeit, in collaboration with Nigeria’s Federal Ministry of Power.

During the launch and steering committee meeting for NESP III, Inga Stefanowicz, the Head of Section Green and Digital Economy at the EU Delegation to Nigeria and ECOWAS, emphasized the importance of collaboration among all stakeholders to achieve a cleaner energy future. She noted, “The EU is pleased to have commissioned additional funding for the third phase to support the development of various frameworks and innovative models.”

Stefanowicz highlighted that this phase will provide new or improved electricity access for 154,000 individuals and ensure clean cooking solutions for 30,000 more, with plans for the installation of additional renewable energy capacity.

The Deputy Ambassador of Germany, Johannes Lehne, reiterated Germany’s commitment to supporting Nigeria in achieving its energy transition goals. He noted that the investments in renewable energy and energy efficiency are crucial for diversifying Nigeria’s energy mix and reducing carbon emissions.

Permanent Secretary of the Ministry of Power, Mahmuda Mamman, remarked that the project aims to address the electricity access gap affecting approximately 100 million Nigerians. He emphasized the role of renewable energy in providing power to rural communities that lack connection to the national grid.

The NESP has previously succeeded in enhancing electricity supply to rural areas, and its third phase aims to build upon those successes. Despite various interventions, Nigeria continues to face significant electricity challenges, including multiple collapses of the national grid in 2024 alone. With a population exceeding 200 million, the country currently generates only around 5,000 megawatts of electricity.

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