The Nigerian Sovereign Investment Authority (NSIA) recently launched a $500 million Renewables Investment Platform for Limitless Energy (RIPLE), with the goal of attracting more investments into the energy sector and redefining Nigeria’s energy landscape. To support the success of this initiative, NSIA signed a Memorandum of Understanding (MoU) with the International Finance Corporation (IFC), a multilateral financial organization and member of the World Bank Group.
The initiative will help advance Nigeria’s transition to energy-efficient solutions, optimize productivity, and reduce the country’s carbon footprint in the face of the growing threat of climate change. In addition to its environmental benefits, the initiative is expected to expand energy access, increase energy efficiency, and ensure energy security.
The launch of the initiative comes at a time when Nigeria is facing a growing energy crisis. The country’s power sector is currently beset by a host of challenges, including inadequate infrastructure, insufficient investment, and a lack of regulation. Moreso, the country’s power sector is largely dependent on natural gas, which is subject to price volatility and supply disruptions.
- COP 28:NNPC chief, Kyari advocates just energy transition for Africa
- COP28 sets goal to boost clean energy, phase out fossil fuels
- AfDB, FSDH ink $20m deal to spur SME growth in Nigeria
- Nigeria reaps over $5bn in climate action commitments at COP28
- Nigeria’s tech ecosystem absent in $117.8bn global HPC market
In his remarks at the MoU signing ceremony,Aminu Umar-Sadiq, NSIA managing director/chief executive officer,stated that the initiative was another major step forward in the authority’s climate sustainability asset class, building on previous initiatives such as the Carbon Vista project with Vitol and the Construction Finance Warehouse Facility. He noted that the partnership with IFC further demonstrates NSIA’s commitment to sustainable energy transition in Nigeria.
He said, “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 recognise the many opportunities it offers for innovation, growth, and economic transformation. 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.”
According to Dan Croft, regional manager for Africa at IFC, reliable electricity is essential for improving quality of life, productivity, and economic growth in Nigeria. Croft said IFC is pleased to collaborate with its long-standing partner, NSIA, to develop and implement the first phase of this innovative energy solution, which will reduce greenhouse gas emissions and reliance on fossil fuels. This energy solution, he noted, will also provide reliable power for commercial, residential, and industrial use.
Yusuf Umar, programme manager of RIPLE, expressed his excitement about partnering with IFC to accelerate the transition to energy-efficient solutions in Nigeria. He stated that IFC shares RIPLE’s commitment to sustainable development and is an ideal partner in this endeavor. Umar added that RIPLE’s goal is to empower customers with a resilient and environmentally friendly energy solution that will boost productivity and reduce carbon emissions.
Business a.m. gathered that the initial phase of the initiative will be carried out at the Tokarawa Industrial Hub in Kano State, where a generation and distribution system will be set up to meet 70MW of unmet energy demand from industrial, commercial, and residential users. The project is estimated to cover about 9,000 connections.