President Bola Tinubu has secured $70 million from the International Finance Corporation (IFC) as funding for the mini-grid projects.
The President secured the fund at the Africa Energy Summit which ended on Tuesday in Dar Salam, Tanzania.
The fund is part of a $1 billion facility set up by the IFC through grants from the Rockefeller Foundation and the African Development Bank.
According to the Managing Director of the IFC, Makhtar Diop, Nigeria is the first country to benefit from the fund.
“Yesterday President Tinubu signed the first project using this facility, yesterday we signed for $70 million, Diop announced at a session during the summit.”
He explained that the fund was set up to finance renewable energy projects.
In a related development, the Nigeria National Petroleum Company Limited will break ground on the construction of five new mini-LNG plants in Ajaokuta, Kogi State on Thursday.
According to the NNPCL, the five new plants, all in Ajaokuta include:
President Tinubu is expected to participate in the groundbreaking ceremony, according to former Presidential spokesperson, Tolu Ogunlesi.
The plants will boost power generation and expand access to Liquified Petroleum Gas as a clean source of cooking.
The company also co-won a license with BUA Group from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for the development of another mini-LNG in Ajaokuta.
“As part of efforts to enhance domestic gas utilization for businesses and industries, NNPC Gas Marketing Limited (NGML) and BUA Group signed a shareholders’ agreement on Tuesday for the development of a 45mmscf Mini-LNG Plant in Ajaokuta.”
It is expected that these developments will boost energy security in Nigeria, as the country has committed to achieving universal energy access by 2030.