The European Union (EU) has announced plans to invest 37 million euros in Nigeria's power sector. This investment is in addition to the 200 million euros in grants that the EU has already invested in the sector since 2008. The announcement was made by the EU ambassador to Nigeria, Samuela Isopi, during a visit to the Minister of Power, Chief Adebayo Adelabu.
During the visit, Ambassador Isopi discussed the EU's various intervention programs in the power sector. The new investment will cover projects such as small hydro power, solar for healthcare facilities, rural electrification with isolated and interconnected mini-grids, and circular economy in the power sector. These projects are set to begin this year.
The ambassador also took the opportunity to invite the Minister to the upcoming launch of two projects funded by the European Union and implemented by UNIDO (United Nations Industrial Development Organization) on March 26.
In response, Minister Adelabu expressed his gratitude to the EU for their support and highlighted the need for further assistance to address the challenges facing the power sector. He specifically identified the liquidity issue as a major problem and emphasized the importance of having a cost reflective tariff in place for the sector to run efficiently and sustainably. The Minister expressed his excitement about the EU's programs for the sector and confirmed their alignment with the Ministry's strategy. He also promised to work closely with the EU on their programs, particularly regarding small hydro and state electrification within the new act.
Overall, this investment by the EU is expected to contribute to the development of Nigeria's power sector and help address the challenges it faces. The support from the EU will be critical in improving access to electricity and promoting sustainable and efficient power generation in the country.