By Abbas Nazil
The International Finance Corporation (IFC) has pledged $70 million to five Nigerian companies to expand distributed access to renewable energy as part of the Mission 300 initiative.
The announcement was made by Wale Edun, Nigeria’s Minister of Finance and Coordinating Minister of the Economy, during the official launch of the Country Private Sector Diagnostic (CPSD) in Abuja.
The CPSD event was organized by the World Bank Group, which includes the World Bank, IFC, and the Multilateral Investment Guarantee Agency (MIGA).
Edun acknowledged IFC’s significant contributions to Nigeria’s private sector, citing examples such as the $1.2 billion financing for Indorama Fertilizer and the $70 million support for First City Monument Bank (FCMB) to enhance small and medium enterprise (SME) financing.
He emphasized that the latest $70 million commitment under Mission 300 is a crucial step in scaling up Nigeria’s renewable energy capacity and improving electricity access.
Mission 300, a joint initiative by the World Bank and the African Development Bank (AfDB), aims to connect 300 million people in Africa to electricity by 2030.
With nearly 600 million people on the continent lacking access to electricity, the program seeks to bridge this energy gap through increased investments in renewable energy solutions.
The IFC’s support to Nigerian companies aligns with this goal, representing one of the latest transactions since the initiative’s launch.
Edun praised the World Bank Group and other development partners for their assistance in implementing economic reforms under President Bola Tinubu’s administration.
He described the reforms as bold, necessary, and timely, transforming Nigeria’s economic landscape within just 18 months.
He specifically pointed to the removal of fuel subsidies as a critical step that has strengthened government finances and improved economic stability.
The minister also noted improvements in security, which have led to increased oil production and revenue growth.
He emphasized that these changes have fostered a more favorable investment climate, reassuring private sector players about the government’s commitment to economic stability.
However, Edun acknowledged the challenges posed by these reforms, including rising inflation, high living costs, and foreign exchange instability.
He assured Nigerians that the government remains focused on increasing food production, reducing food prices, and implementing social safety net programs to support the poor and vulnerable.
With the World Bank’s support, these initiatives aim to mitigate the impact of economic adjustments on the most affected populations.
Edun highlighted the role of technology in ensuring efficient distribution of social benefits, stating that the government is leveraging biometric and digital tools to reach those in need.
Despite the difficulties, he reaffirmed the administration’s commitment to guiding Nigerians through this phase of macroeconomic transformation, which he believes is already yielding positive results.