The European Union (EU) is set to invest €37million in Nigeria’s power sector, the EU Ambassador to Nigeria, Samuela Isopi, has said, according to a statement by the power ministry on Friday.
Isopi disclosed this during a visit to the Minister of Power, Adebayo Adelabu.
The ministry said the proposed €37 million investment was different from grants of about €200 million invested in the sector by the European Union since 2008.
The EU ambassador was said to have been accompanied by the new Head of Cooperation of the EU, Mr Luca Massimo; and the Programme Manager on Energy, Mr Godfrey Ogbemudia.
During the visit, the ambassador spoke on the EU’s various intervention programmes in the power sector, adding that the current support would cover small hydropower projects and solar projects for healthcare facilities.
Isopi said the fresh intervention would also cover rural electrification with isolated and interconnected mini-grids project, as well as the circular economy in the power sector project.
“She (Isopi) said the projects would commence this year”, the statement added.
The EU ambassador also used the opportunity to invite the power minister to an upcoming launch of two projects funded by the European Union and implemented by UNIDO, which will hold on 26 March 2024.
Responding, Adelabu, who received the ambassador in company of his Chief Technical Advisor, Mr Adedayo Olowoniyi, expressed appreciation to the EU for the support.
He stated that more support was needed to address the enormous challenges in the power sector.
The minister identified the liquidity issues in Nigeria’s power sector as the main problem that the government was trying to resolve.
He told his guests that the market would only be sustainable and run efficiently when there was a cost-reflective tariff in place.
Adelabu also promised to work with the EU on its programmes, especially the small hydropower and state electrification projects, within the new Electricity Act.
While covering multiple areas, the current EU support for Nigeria’s power sector falls under the Green and Digital Economy umbrella within their broader Multiannual Indicative Programme for 2021-2027.
There is also technical assistance in expertise and training for capacity building, as well as policy support through collaborative development and implementation of reforms.
Examples of projects include the Nigeria Development Cooperation Programmes’ Compendium, which is a €107.7 million project aimed at improving access to and reducing the environmental impact of renewable energy sources.
