Gift Ekwueme
Lagos — The Nigerian Sovereign Investment Authority, NSIA, in partnership with the International Finance Corporation, IFC, has launched a $500 million Renewables Investment Platform for Limitless Energy, RIPLE, in a bid to boost renewable energy transition in Nigeria.
Under RIPLE, NSIA, in the strategic partnership with IFC, seeks to further advance Nigeria’s energy access, enhance energy-efficient solutions and reduce its carbon footprint.
The authority would be undertaking a pilot project located within the Tokarawa Industrial Hub in Kano State and it involves setting up a generation and distribution system to meet 70 megawatts of unsuppressed energy demands of industrial activities, commercial enterprises, and residential customers in an area covering about 9,000 connections.
The NSIA and IFC signed a Memorandum of Understanding, MoU, on the project over the weekend in Abuja.
Speaking at the event, the Managing Director/Chief Executive of the NSIA, Mr. Aminu Umar-Sadiq, said the initiative was dedicated to the development, investment, and operation of renewable energy projects across the country.
“The collaboration between NSIA and the IFC is a clear demonstration of NSIA’s dedication to sustainable energy transition in Nigeria. As the custodian of economic resources for current and future generations of Nigerians, tackling climate risks is integral to NSIA’s objectives.
“We are hoping that this fund we are targeting, about $500 million, will focus on renewable energy space in general. The strategy is in three folds. The first is around diesel displacement, the second is around franchising in general, and then the third is around the backward integration towards PV manufacturing in Nigeria.
“Naturally, we’ll start with a proof of consent project with baby steps. However, as always the ambition of the NSIA and the IFC as it relates to this fund, is to scale up; to be able to go large. We are hopeful that in the course of time, we’ll begin to feel the impact of projects that we are co-developing as well as co-executing for the benefits of Nigeria and Nigerians.”
“As the custodian of economic resources for current and future generations of Nigerians, tackling climate risks is integral to NSIA’s objectives. We recognize the many opportunities it offers for innovation, growth, and economic transformation.
Umar-Sadiq also described it as another milestone initiative by the NSIA in the climate sustainability asset class, having previously launched Carbon Vista with Vitol and the Construction Finance Warehouse Facility.
“RIPLE is another milestone initiative by NSIA in the climate sustainability asset class, having previously launched Carbon Vista with Vitol and the Construction Finance Warehouse Facility.”
The NSIA boss explained the deal with the IFC, a private sector investment arm of the World Bank Group, as a demonstration of the two parties’ commitment towards redefining the development and advancement of Nigeria’s renewable energy landscape.
Regional manager, Africa at IFC, Dan Croft, said, “Reliable electricity is crucial for improving quality of life, productivity, and economic growth in Nigeria.
“IFC is pleased to collaborate with our longstanding partner, NSIA, to develop and implement the first phase of this innovative energy solution which will reduce greenhouse gas emissions and reliance on fossil fuel.
“The energy solution will also deliver reliable power supply for commercial, residential as well as industrial use.” he said.
