The Federal Government, through the Nigerian National Petroleum Corporation (NNPC) and the US Trade and Development Agency on Tuesday, signed a $1.16 million grant to support electricity infrastructure development in Nigeria.
The power plant which will be built in Abuja is modelled to generate 1,350 megawatts of electricity.
The agreement was signed at Nigeria International Petroleum Summit (NIPS) in Abuja by the Managing Director, Gas & Power Investment Company, an NNPC subsidiary, Hussain El-Yakub, and the USTDA’s Director, Thomas Hardy.
Hardy said that the grant was another demonstration of the American government’s commitment to ensuring infrastructural development across the globe.
“Nigeria is the largest population in Africa and we are proud investing in the energy sector in the largest African nation to provide power to the rural communities,” he said.
He noted that the grant would be used for feasibility study of the Independent Power Projects (IPP) and other infrastructure development in the energy sector.
“The grant is part-funding for the NNPC Abuja IPP modelled to generate 1,350 mw,” he said
According to him, the money will be released in tranches depending on the particular project in the sector.
He said that General Electric (GE) would provide all the technology for the IPP project.
Hardy reiterated the agency’s commitment to partner with Nigeria to ensure electricity was accessible to all Nigerians.
In his remarks, the NNPC Group Managing Director, Malam Mele Kyari, said that the Nigerian energy deficiency could be corrected with partnership among stakeholders.
He said the grant would help to ensure that power was delivered to Nigerians for economic growth and development.
Kyari noted that the NNPC and the oil and gas sector had all it takes to deliver power with relevant framework in place.
According to him, gas remains the cheapest source of power and efforts must be made to stop flaring it in the country.
“We have gas in abundance, we must create infrastructure that will help create gas for power generation.
“We need power to create jobs and we must create prosperity so that we can have peace in our country.
“We are grateful for this grant,” he said.