Osinbajo: Nigeria Needs $1trillion to Upgrade Energy Infrastructure

 

Vice-President Yemi Osinbajo on Thursday in Abuja said Nigeria needs a whopping $1 trillion investment to renew and update its energy infrastructure.

The vice-president made this disclosure while declaring open the National Energy and Climate Change summit at the Banquet Hall of the State House.

Disclosing that the government was working hard to attract both domestic and foreign-direct investments into the energy sector, Osinbajo said the country's energy and energy-related policies are tilted towards energy supply security and are designed to mitigate global warming.

At the event which was organised by the Energy Commission of Nigeria (ECN) and the Federal Ministry of Science and Technology, Osinbajo, who was represented by the Minister of Science and Technology, Dr. Ogbonnaya Onu, argued that the government had enhanced transparency and openness in governance with a view to supporting private investment.

Recalling that Onu signed an agreement on behalf of Nigeria when the same event took place last year, the vice-president said Nigeria had since joined the charter with a view to promoting Nigeria's chances of benefiting from International Energy Charter (IECh).

"I recall the ceremony last year in this same hall when the Minister of Science and Technology signed on behalf of Nigeria the IECh political declaration after obtaining the approval of the president.

"Nigeria then joined the International Energy Charter (IECh) as an observer member state. I also recall that the Energy Commission of Nigeria immediately signed a memorandum of understanding (MoU) with the IECh secretariat in order to promote such activities that will be beneficial to our dear country.

"Following this, a study of the Energy Investment Risk Assessment (EIRA) for Nigeria has been completed, and the report has just been presented to us. I am happy that the assessment, which featured four performance indicators, has scored our energy investment risks as moderate.

"This is challenging in view of the huge investment of about $1 trillion required to modernise our energy infrastructure in 29 years between 2014 and 2043.

"The government is doing a lot to attract both domestic and foreign-direct investment into the energy sector," Osinbajo stated.

The vice-president, who said the move would create more jobs, additional wealth and reduce poverty in the country, added that it was the expectation of the federal government that foreign investors would work with local investors and professionals in accordance with the Presidential Executive Order 5.

According to him, "I am confident that this would guarantee adequate, reliable, cost-effective and environmentally acceptable energy supply for a diversified economy as  articulated in the Economic Recovery and Growth Plan, (ERGP)."

In his address, the Director-General and Chief Executive Officer of ECN, Prof. Eli Jidere Bala, said ECN, in accordance with its mandate, initiated the summit to serve as a forum for deliberation on national issues on energy.

According to him, the intention is to facilitate the monitoring and assessment of performance of the energy sector in the execution of government policies on energy.

Also speaking, the European Union (EU) Head of Cooperation to Nigeria and ECOWAS, Kurt Cornelis, disclosed that the EU had offered 150 million euros to support Nigeria in various projects across the electricity value chain in its power sector as well as the off-grid sector.

He said: "Just to mention a few, the EU from this envelope is co-financing the phase 2 of NESP with 20million euros as well as a support to TCN with 25miliion euros grant to construct the Kura-Jogana-Gwiwa-Daura-Katsina double circuit 330KVA transmission line and substations which will also help evacuate the 1000MW Jigawa solar city project."

Cornelius also said the EU was focused on moves to increase support for Nigeria's climate change initiatives by working hand in hand with the Federal Ministry of Environment to create awareness at the highest levels on the need to take meaningful steps in the efforts to combat climate change.