Nigeria, France Sign $14 billion Power Sector MoU

Nigeria, France Sign $14 billion Power Sector MoU

In its bid to resuscitate the nation’s ailing power sector, Nigeria’s Federal Government and the government of France have signed a 14 billion Naira loan agreement to cover capacity-building and upgrade of facilities.

In a statement issued Tuesday by Mr Olivier Delefosse, Country Director, French Development Agency (AFD), the Memorandum of Understanding (MoU) was signed during the recent visit of French President François Hollande to Abuja for the Second Regional Summit, Vanguard writes.

“A 46.2 million U.S. dollars (about N13bn) subsidised loan granted by AFD to the Government of Nigeria, to enhance vocational training in the power sector, was signed. “A 100 million U.S. dollars (about N248bn) subsidised line of credit granted by AFD to Zenith Bank, dedicated to the financing of investments of electricity distribution companies (DisCos), was signed.”

Delefosse also added that the agreement, which was signed in partnership with the Ministry of Finance, also had additional paired financing packages for training programmes.

“A 350,000 euro (about 120 million naira) Grant Agreement was signed between AFD, Schneider Electric Nigeria and National Power Training Institute of Nigeria (NAPTIN). The agreement aimed at implementing a Technical Partnership between Schneider Electric Nigeria and NAPTIN for the development of a flexible and affordable training program for freelance electricians.

According to him, this is with a view to improve the quality and safety standards for domestic installations in Nigeria and promote entrepreneurship in the power sector.

“A 2.3 million euro Grant Agreement was signed between AFD and ANED, funded by the African Infrastructure Trust Fund of the EU. It is aimed at implementing a technical assistance for DISCOs, ANED and local banks in order to improve the quality of electricity distribution projects, and access to finance.”

While reiterating the strong relationship between Nigeria and the AFD, he said power is a key priority for the group in Nigeria, and they’ll continue supporting the country through provision of credit facilities to local banks for DisCos investments, support to the vocational training and credit facilities for green energy projects. The AFD Country Director said Hollande also made an announcement related to the launch of the French Initiative for Lake Chad. According to him, the Initiative will be carried out by AFD.