IFC commits $70m to Nigerian companies to boost energy supply

The International Finance Corporation (IFC) is committing $70 million to five Nigerian companies to enable the country scale up distributed access to renewable energy under mission 300.

Wale Edun, minister of finance and coordinating minister of the economy disclosed this at the presentation and official launch of the Country Private Sector Diagnostic (CPSD) by the World bank group, comprising the World bank, IFC, and the Multilateral Investment Guarantee Agency (MIGA) in Abuja on Thursday.

Edun commended IFC’s support for Nigeria’s diverse private sector projects, citing the $1.2bn financing for Indorama fertiliser, $70 million to FCMB for SME financing, as well as commitment under mission 300, being championed by the world bank and Africa Development Bank (AfDB).

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Mission 300

Mission 300 is a collaborative initiative between the World Bank and the African Development Bank aimed at connecting 300 million people in Africa to electricity by 2030.
This ambitious project seeks to address the continent’s significant energy gap, where nearly 600 million people lack access to electricity.

“Essentially, the $70 million IFC support to five Nigerian companies is part of the mission 300 and the newest transaction to be done since the announcement of that project,” Edun stated.

He further commended the world bank group and other development partners for their role in assisting President Tinubu’s administration implement “what has been seen as not just bold and courageous but highly necessary reforms in a timely manner that have, within 18 months, changed the face of the Nigerian economy and society.”

He said for instance the removal of fuel subsidies has left the economy and government finances in a much better place.

He further highlighted improvement in security, which has seen increased oil production, revenue growth, and a stable economy where the private sector can feel comfortable to invest.

He noted another key element of the reforms as the commitment to help the poorest and most vulnerable citizens through the cost of living spike, which he called “an inevitable aspect of changing from a rent seeking, ineffective and wasteful regime to one that is market based.”

Acknowledging that those reforms have caused inflation spikes, high cost of living and weak foreign exchange, Edun assured that government’s commitment remains to increase food production, cut down food prices, increase availability and affordability and of course, implement social safety net Programmes for the poor and vulnerable, with the help of the World Bank.

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“That effort is being done with the implementation of technology. It is difficult, it requires continued effort and determination, but it is a worthy prize to pay so as to reach quickly, biometrically, and digitally, a certain portion of the population that need help at any given time.

“Our commitment is to help all Nigerians through this stage of macroeconomic reform, which is now yielding very positive results,” the minister assured.