NEWS

During her visit to Abuja United Kingdom Minister for Africa, Vicky Ford, announced the UK’s plan to invest £10 million ($13,595,650) into Nigeria for low-carbon energy projects through InfraCredit.

The £10m investment, which is the equivalent of 5.6 billion Naira, is aimed at helping Nigeria invest in clean energy projects, including solar minigrids. 

This contribution builds on the Minister’s commitments at Cornwall G7 and COP26 to help developing countries take advantage of clean technology, grow their economies sustainably and leverage institutional investment.

“The UK is committed to increasing both renewable energy and energy access in Nigeria, driving clean, sustainable and resilient growth,” said Ford. 

An era-defining opportunity

While supporting Nigeria’s Climate Change commitments, the £10m will also be blended to de-risk transactions, therefore mobilising domestic institutional investment from local pension funds, insurance firms and other local institutional investors. 

“InfraCredit is pleased to be working with FCDO to bring more local finance from people’s pensions into such an important developmental area as low carbon energy innovation and access,” said Uche Orij, CEO of Nigerian Sovereign InvNSIA and shareholder in InfraCredit.

Currently, approximately 85 million Nigerians are without access to reliable energy and this investment creates an opportunity to provide better standards of living for the Nigerian people, as well as the opportunity for job creation.

Ford called this an “honest and reliable investment”, saying that the investment would be “one that will help strengthen the economic partnership” between the UK and Nigeria.

“As the world looks to transition to clean growth, we are witnessing an era-defining opportunity for the private sector. This transaction is particularly exciting as it brings together UK government support with the institutional capital which is essential to growing the sector at scale.”

Boosting growth, prosperity and opportunity in Nigeria

Ford also announced plans to provide British support for the high concentration of female entrepreneurs across Nigeria. Given that Nigerian businesswomen and female entrepreneurs currently face disproportionate barriers to business, the UK has agreed to invest an additional £74m ($100,597,450), the equivalent of 41.6 billion Naira.

Ford announced that the new investment will be aimed at boosting support for women-owned businesses, as well as small and medium enterprises, which contribute to 48% of Nigeria’s GDP. 

“When smaller businesses and women entrepreneurs are economically empowered, their whole community benefits,” said the UK minister. 

“That is why the UK is providing new support with our African partners to help businesses access finance to scale up their operations. The UK will work closely with the Nigerian Government to deepen our economic co-operation and boost growth, prosperity and opportunity in both our countries.”