NSIA launches a $500mn dollar Renewable Energy initiative
…Signs collaborative agreement with IFC
By Patience Ikpeme
The Nigerian Sovereign Investment Authority (NSIA), in partnership with the International Finance Corporation (IFC) of the World Bank, is embarking on a groundbreaking initiative—the Renewables Investment Platform for Limitless Energy (RIPLE)—aimed at raising $500 million for renewable energy projects.
The Nigeria Sovereign Investment Authority (NSIA) and IFC have committed $25 million each to inaugurate this ambitious venture. The initiative aims to revolutionize energy sourcing by displacing diesel reliance, focusing on franchising, and driving backward integration for photovoltaic (PV) manufacturing—a process that harnesses sunlight to generate electricity.
Speaking on this landmark collaboration, Mr. Aminu Umar-Sadiq, Managing Director and CEO of NSIA, highlighted the dedication of NSIA to Nigeria’s sustainable energy transition. He emphasized, “Tackling climate risks is integral to NSIA’s objectives, offering opportunities for innovation, growth, and economic transformation.”
Umar-Sadiq outlined the strategy, detailing the plan to showcase smaller projects initially to attract external investors. This strategy involves executing infrastructure projects over three to four years to demonstrate capabilities, attract additional capital, and scale up operations.
He emphasized the primary goal: bridging Nigeria’s power deficit through sustainable, renewable energy sources. Beyond investment, NSIA aims to co-sponsor and co-develop projects, providing impactful solutions beyond financial backing.
NSIA and IFC are commencing with a 70-megawatt project in Tokarawa, Kano State, addressing the energy demands of industrial, commercial, and residential sectors across approximately 9,000 connections. Further projects are slated for announcement in the near future.
Dan Croft, IFC’s Regional Manager for Africa, expressed the transformative potential of this project, citing a two-decade quest for such a solution. He underscored the importance of innovation and bespoke solutions in transforming the energy landscape
Highlighting IFC’s interest in access, efficiency, security, and sustainability, Croft emphasized their commitment to partnering with dedicated, sustainable development-oriented collaborators, a rare find in the industry.
Croft detailed IFC’s approach, focusing not just on upfront seed capital but seeking long-term investment opportunities. He expressed excitement about this project due to its potential to meet long-term energy needs effectively.
In line with IFC’s goals, Croft emphasized the crucial role of reliable electricity in enhancing the quality of life, productivity, and economic growth in Nigeria. The collaboration with NSIA aims to reduce greenhouse gas emissions, decrease fossil fuel reliance, and deliver dependable power for commercial, residential, and industrial use.
Yusuf Umar, Program Manager for RIPLE, emphasized their commitment to energy-efficient solutions and sustainability, aiming to empower customers with environmentally friendly energy solutions to optimize productivity and reduce carbon footprint.
RIPLE signifies a significant stride in NSIA’s climate sustainability efforts, following earlier initiatives like Carbon Vista with Vitol and the Construction Finance Warehouse Facility. This joint venture with IFC promises to revolutionize Nigeria’s energy landscape, providing a sustainable, reliable, and environmentally conscious power supply for the nation’s growth and development.
