Germany To Back Nigeria’s Sustainable Energy Goals With $160 Million Power Sector Investment

The German Deputy Ambassador to Nigeria, Mr. Johannes Lehne has said Germany is set to inject $160 million into Nigeria power sector.

The fund, according to the envoy, is to provide five big transformers to stabilize the grid.

This is coming as Nigeria launched the 3rd phase of the Nigerian Energy Support Programme, NESP, a European Union and German Government funded programme. NESP is aimed to further support Nigeria in building a sustainable energy sector through the expansion of access to clean, efficient and reliable energy.

Speaking at the launch of NESP III, the envoy said the programme which is part of Siemens power project is expected to take off in 2025, noting that NESP which was started in 2013 has benefitted 45,000 people and 105 communities across the country.

The ambassador said: “Now we go into the second phase with the first five big transformers to stabilize the grid and this will cost 160 million dollars which is financed by Germany.

“Siemens is doing this and now we’re close to signing the contract.

“Actually it was already supposed to take off last year but it will take off in the beginning of 2025.”

The Deputy Ambassador, also reiterated the commitment of the German government to Nigeria’s Energy Transition targets.

Speaking at the launch and 1% Steering Committee meeting of NESP III, the Permanent Secretary, Federal Ministry of Power, Mahmuda Mamman said: “The Ministry continues to appreciate the EU and German Government for their continuous support to Nigeria, especially for ensuring energy security in the most affordable and sustainable manner”.

He stated that the 3” phase of the programme is “a welcome idea” that would build on the achievements of NESP Il by attracting more investments in renewable energy and energy efficiency as well as support towards the objectives of Nigeria’s Electricity Act 2013, aimed at stabilising the electricity market in states.”

Head of Section Green and Digital Economy at the European Union Delegation to Nigeria and ECOWAS, Ms. Inga Stefanowicz said “achieving a cleaner future is the business of all stakeholders, and the EU has not only continued to support the Nigerian government to achieve its energy security plans but to also achieve a sustainable energy future through the increase of renewables in its electricity mix.

“The EU is pleased to have commissioned an additional funding for the third phase of the programme to continue supporting the development of various frameworks and innovative models, bringing a new landscape to the concept of electricity franchising, attracting renewable energy investments and ensuring reliable power supply to its beneficiaries.”

 She further said: “Technologies and investments for renewable energy and energy efficiency will be key for diversifying Nigeria’s energy mix and decarbonising the five (5) critical sectors identified in the Energy Transition Plan (ETP).

The third phase of NESP was commissioned by the German Federal Ministry for Economic Cooperation and Development (BMZ) with €8.9 million in May this year. The EU has recently commissioned an additional €9 million, which increases the total budget of the NESP programme to €17.9 million. This shows Germany’s and its partners continued commitment to support Nigeria’s set targets in the Energy Transition Plan.”

The Head of Programme, NESP, Mr. Duke Benjamin, emphasised that “active participation of and collaboration with the public and private stakeholders is critical to improve availability and reliability of energy in Nigeria. Hence, the 3% phase of the programme would offer support – ranging from sustainable energy generation for rural communities, healthcare centres and businesses, efficient utilisation of energy, bridging the energy and electricity data gaps, strengthening private sector investments, and developing the capacities of regulatory agencies and local financial institutions”, he added.

So far, NESP has supported the Nigerian government in creating an enabling environment for local and international investments to thrive energy efficiency, renewable energy and rural electrification investments fostering investments in renewable energy, energy efficiency and rural electrification, as part of NESP’s framework in Nigeria.

Michael Olugbode 

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