Uche Usim and Adewale Sanyaolu, Abuja
Bold steps towards solving Nigeria’s electricity challenge were taken on Tuesday as the Nigerian National Petroleum Corporation (NNPC) and the United States Trade and Development Agency (USTDA) signed a $1.1 million grant as part funding for the NNPC-Abuja Independent Power Project (IPP) designed to generate 1,350 megawatts (MW) of electricity.
The Group Managing Director of the NNPC, Mr Mele Kyari, signed on behalf of the NNPC, while the U.S Ambassador to Nigeria, Mary Beth Leonard, signed for the U.S agency at a ceremony held on the sidelines of the Nigeria International Petroleum Summit (NIPS) in Abuja.
In his remarks, Kyari said the project was driven by an urgent need to unlock the economic potential of Nigeria currently bogged down by a power challenge.
He added that Nigeria, as a matter of urgency, should leverage on its abundant gas resource instead of flaring it.
Kyari commended NNPC”s partnership with USTDA, adding that the $1.1 million support will help de-risk the project.
He said: “This project will be delivered to the market and offtakers are ready for it. Nigeria will be best of it. “Not that we can’t afford $1.1million, but that international bodies are with us is what we’re proud.
“We’re transparent in our dealings. There will be peace and prosperity once we solve this electricity challenge”, he said. Also speaking on the project, the Acting Director USTDA Thomas Hardy, said the $1.1million is the investment of the USDTA for the feasibility studies that will drive and make case for the bankability of the project.
“The goal of USTDA is to make sure the project is viable and in a way that will increase the likelihood of implementation financing whether it’s from World Bank or the Export Import Bank,” Hardy said.
He said the fund the USTDA is investing in the project does not require counterpart funding from Nigeria as the USTDA has made a 100 per cent commitment to the project.
The Abuja 1,350mw Independent Power Plant (IPP) would leverage on the existing huge natural gas resources from the NNPC Upstream and the proposed Ajaokuta-Kaduna-Kano (AKK) Gas pipeline to boost the nation’s revenue base and generate employment opportunities for the youth.