Germany to support Nigeria’s sustainable energy goals with $160 million investment in energy sector

Germany’s Deputy Ambassador to Nigeria, Mr. Johannes Lehne, has said Germany intends to invest $160 million in Nigeria’s energy sector.

According to the ambassador, the fund must provide five large transformers to stabilize the network.

This comes as Nigeria launched Phase 3 of the Nigeria Energy Support Program, NESP, a program funded by the European Union and the German government. The NESP aims to further support Nigeria in building a sustainable energy sector by increasing access to clean, efficient and reliable energy.

Speaking at the launch of NESP III, the Ambassador said the program, which is part of the Siemens energy project, is expected to begin in 2025, noting that NESP, launched in 2013, has benefited 45,000 people and 105 communities across the country.

The ambassador said: “We are now moving into the second phase with the first five large transformers to stabilize the grid, and this will cost $160 million, which is funded by Germany.

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

“It was actually supposed to start last year, but it starts in early 2025.”

The Deputy Ambassador also reaffirmed the German government’s commitment to Nigeria’s energy transition goals.

Speaking at the opening and steering committee meeting of NESP III, the Permanent Secretary of the Federal Ministry of Energy, Mahmuda Mamman, said: “The Ministry continues to appreciate the EU and the German government for their continued support to Nigeria, especially in ensuring energy security. in the most affordable and sustainable way.”

He said Phase 3 of the program is a “welcome idea” that will build on the achievements of NESP II by attracting more investment in renewable energy and energy efficiency, as well as supporting the achievement of the goals of the Nigerian Electricity Act 2013 aimed at stabilizing the market electricity in the states.”

The Head of Green and Digital Economy at the Delegation of the European Union to Nigeria and ECOWAS, Ms. Inga Stefanovic, said that “achieving a cleaner future is the responsibility of all stakeholders, and the EU not only continues to support the Nigerian government in achieving its energy goals.” security plans, but also achieving a sustainable energy future by increasing the share of renewable energy sources in the electricity mix.

“The EU is pleased to provide additional funding for the third phase of the program to continue supporting the development of different frameworks and innovative models, bring a new perspective to the concept of electricity franchising, attract investment in renewable energy and ensure reliable electricity supply. to its beneficiaries.”

She further said: “Technology and investment in renewable energy and energy efficiency will be key to diversifying Nigeria’s energy mix and decarbonizing 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) for €8.9 million in May this year. The EU recently allocated an additional €9 million, which brings the total NESP program budget to €17.9 million. This shows the continued commitment of Germany and its partners to support the goals set by Nigeria in the Energy Transition Plan.”

The head of the NESP program, Mr. Duke Benjamin, emphasized that “active participation and collaboration with public and private stakeholders is critical to improving energy availability and reliability in Nigeria. Thus, the 3 percent phase of the program will offer support ranging from sustainable energy production for rural communities, health centers and businesses, efficient use of energy, closing energy and electricity data gaps, strengthening private sector investment and capacity development for regulators and local financial institutions,” he added.

NESP currently supports the Government of Nigeria in creating an enabling environment for local and international investment to promote energy efficiency, renewable energy and rural electrification investment by promoting investment in renewable energy, energy efficiency and rural electrification through the NESP program in Nigeria.

Michael Olugbode

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