The Federal Government of Nigeria has secured a $1.5 billion loan facility from the US-EXIM Bank to deliver solar power infrastructure in 10 different locations nationwide.
According to the Chief Executive Officer, SUN Africa LLC, USA, Adam Cortese, the government-to-government loan facility would cover a concession period of 20 years.
He said, “This is government-to-government financing. It’s built upon the success that we’ve had in Angola recently, where we’ve delivered roughly $2.6 billion of solar PV storage and transmission capacity.
“I think the important point to note here is yes, it’s a government-to-government loan, from the US-EXIM Bank to the government of Nigeria, but it’s being done at a concessional rate, over 20-year tenure, which is extremely attractive.
“What’s unique about this model is that NDPHC is going to own its own assets. So, it’s going to own its own generation base and our project will deliver a low-levelised cost of electricity, which will not only allow them to pay back the loan from EXIM Bank, but generate a profit on top of it.”