In furtherance of its sustained drive towards a cleaner energy environment, the Federal Government of Nigeria has signed a €20m agreement with the German Government to support Nigeria’s energy transition and promote renewable energy development in the country.
A statement issued on Thursday by the Ministry of Budget and Economic Planning, indicated that the agreement, which was finalised the previous day, would be facilitated through the KfW Development Bank and the Africa Enterprise Challenge Fund.
The statement reads: “The Federal Government of Nigeria has signed an initial grant of €20m and a Project Agreement with the German government on Energy transition to support climate-friendly development in Nigeria.
“This will be facilitated through the KfW Development Bank and the Africa Enterprise Challenge Fund”, it added.
The Minister of Budget and Economic Planning, Abubakar Bagudu, who represented Nigeria, signed the pact in his office in Abuja while the First Secretary and Head of Development Cooperation at the German Embassy in Nigeria, Dr Karin Jansen, signed for Germany and the representative of the KfW Development Bank, Gerald Keuhnemund, signed for the bank.
Speaking at the event, Bagudu listed the project’s three primary objectives as including, promoting the adoption of renewable energy for improved energy efficiency, expanding vocational training in renewable energy and energy assets, and reducing Nigeria’s reliance on fossil fuels.
The minister maintained that the deal would contribute to Nigeria’s renewable energy drive by enhancing energy access to underserved communities and creating economic opportunities for youths and others in the grassroots.
According to him, the project will also help build a skilled workforce capable of sustaining Nigeria’s energy economy.
Bagudu advocated the need for greater synergy among Nigeria’s development partners, particularly the African Enterprise Development Fund, to avoid duplication of such projects and enhance support for sustainable energy initiatives in sectors like health and education.
In her remarks, the German representative noted that the agreement marked a significant milestone as her country was celebrating the 50th anniversary of its Energy Transition Challenge Fund.
Jansen said that the fund would finance only the most impactful renewable energy projects, strengthening Germany’s partnership with Nigeria in her energy transition journey.
