…As W’Bank pledges to energise 300 million Africans by 2030
By Cyril Ogar
President Bola Tinubu has secured $70 million from the International Finance Corporation ,IFC, as funding for the mini-grid projects.
The President secured the fund at the Africa Energy Summit which ended on Tuesday in Dar Salam, Tanzania.
The fund is part of a $1 billion facility set up by the IFC through grants from the Rockefeller Foundation and the African Development Bank.
According to the Managing Director of the IFC, Makhtar Diop, Nigeria is the first country to benefit from the fund.
“Yesterday President Tinubu signed the first project using this facility, yesterday we signed for $70 million, Diop announced at a session during the summit”.
He explained that the fund was set up to finance renewable energy projects.
In a related development, the Nigeria National Petroleum Company Limited will break ground on the construction of five new mini-LNG plants in Ajaokuta, Kogi State on Thursday.
According to the NNPCL, the five new plants, all in Ajaokuta include:
PRIME LNG
NGML/Gasnexus LNG
BUA LNG
Highland LNG
LNG Arete
President Tinubu is expected to participate in the groundbreaking ceremony, according to former Presidential spokesperson, Tolu Ogunlesi.
The plants will boost power generation and expand access to Liquified Petroleum Gas as a clean source of cooking.
The company also co-won a license with BUA Group from the Nigerian Midstream and Downstream Petroleum Regulatory Authority ,NMDPRA, for the development of another mini-LNG 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”.
It is expected that these developments will boost energy security in Nigeria, as the country has committed to achieving universal energy access by 2030.
The NMDPRA awarded 10 Gas Distribution Licences ,GDLs, to six companies to increase gas utilisation and expansion in the country.
The licenses issued cover a cumulative gas distribution capacity of approximately 1.5 billion standard cubic feet per day with over 1,200km of gas distribution pipeline network as well as over 500 customer stations in the six geopolitical zones of the country.
These plants will supply gas to power plants, gas-powered industries, and LPG centres expanding access to electricity and clean cooking.
Meanwhile, World Bank Group has reaffirmed its commitment to tackling Africa’s energy deficit, aiming to provide electricity to half of the 600 million people on the continent who currently lack access.
This was announced by Ajay Banga, President of the World Bank Group, at the recently concluded Mission 300 Africa Energy Summit in Tanzania.
“Access to electricity is a fundamental human right. Without it, countries and people cannot thrive”, Banga stated.
“Our mission to provide electricity to half of the 600 million people in Africa without access is a critical first step. To succeed, we must embrace a simple truth: no one can do it alone. Governments, businesses, philanthropies, and development banks each have a role—and only through collaboration can we achieve our goal”.
On his part, Dr. Akinwumi A. Adesina, President of the African Development Bank Group, emphasized the need for decisive action to accelerate electrification across the continent. “Critical reforms will be needed to expand the share of renewables, improve utility performance utilities, ensure transparency in licensing and power purchase agreements, and establish predictable tariff regimes that reflect production costs. Our collective effort is to support you, heads of state and government, in developing and implementing clear, country-led national energy compacts to deliver on your visions for electricity in your respective countries”.
At the summit, key stakeholders announced a series of financial commitments to support Mission 300, a strategic initiative aimed at accelerating energy access across Africa. The financial commitments include:
African Development Bank Group ,AfDB, & World Bank Group: A combined allocation of $48 billion in financing for Mission 300 through 2030, with flexibility to adjust based on implementation needs.
Agence Francaise de Development ,AFD, €1 billion to support energy access in Africa.
Asian Infrastructure Investment Bank ,AIIB: Between $1 billion and $1.5 billion for Mission 300.
Islamic Development Bank ,IsDB, Group: $2.65 billion in funding for energy access from 2025 to 2030.
OPEC Fund: An initial commitment of $1 billion, with the possibility of additional financing.
World Bank Group and AfDB: Launched Zafiri, an investment company focused on private sector-led solutions, including renewable mini-grids and solar home systems. The initiative’s anchor partners plan to invest $300 million in its first phase and mobilize up to $1 billion to bridge Africa’s energy equity gap.
The Mission 300 Africa Energy Summit was hosted by the United Republic of Tanzania, the African Union, AfDB, and the World Bank Group, with significant backing from global development partners, including the Rockefeller Foundation, ESMAP, Global Energy Alliance for People and Planet ,GEAPP, Sustainable Energy for All ,SEforALL, and the Sustainable Energy Fund for Africa.
Africa’s electricity gap remains a major barrier to economic development, with millions of households and businesses lacking the power needed for essential services, industrialization, and job creation. The commitments made at Mission 300 highlight the growing international resolve to address this challenge through renewable energy, private sector investments, and large-scale financing initiatives.
As the World Bank and its partners move forward with Mission 300, success will hinge on efficient project execution, regulatory reforms, and continued collaboration among governments, investors, and financial institutions.
