Tinubu Secures $70 Million IFC Fund for Mini-Grid Projects as NNPCL Expands LNG Plants
The administration of President Bola Tinubu has secured a $70 million facility from the International Finance Corporation (IFC) to fund mini-grid power projects in Nigeria.
The deal, which is part of a larger $1 billion fund backed by the Rockefeller Foundation and the African Development Bank, was finalized at the Africa Energy Summit in Dar es Salaam, Tanzania, which ended on Tuesday.
Nigeria is the first country to benefit from the IFC’s fund, according to the corporation’s Managing Director, Makhtar Diop.
“Yesterday President Tinubu signed the first project using this facility, yesterday we signed for $70 million,” Diop announced during a session at the summit.
The funding comes as Nigeria continues to grapple with persistent power grid failures. Last year, the country experienced multiple nationwide blackouts due to system collapses, worsening the struggles of businesses and households. The government has since pushed for alternative energy solutions, including mini-grids and off-grid power generation, to stabilize electricity supply.
In a related development, the Nigerian National Petroleum Company Limited (NNPCL) is set to commence the construction of five new mini-LNG plants in Ajaokuta, Kogi State, on Thursday. The plants include PRIME LNG, NGML/Gasnexus LNG, BUA LNG, Highland LNG, and LNG Arete.
NNPCL also secured a license with BUA Group from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to develop another mini-LNG facility in Ajaokuta.
“As part of efforts to enhance domestic gas utilization for businesses and industries, NNPC Gas Marketing Limited (NGML) and BUA Group signed a shareholders’ agreement on Tuesday for the development of a 45mmscf Mini-LNG Plant in Ajaokuta,” the NNPCL stated.
