UK Set To Support The Energy Sector With £10m

UK Set To Support The Energy Sector With £10m
UK Set To Support The Energy Sector With £10m

Yesterday, the United Kingdom (UK) announced the provision of £10 million in concessional financing in collaboration with InfraCredit in order to mobilize pension and insurance investments in the country.

The announcement was made in Abuja by Vicky Ford, a visiting

United Kingdom Minister for Africa, Latin America, and the Caribbean. She said the UK is providing up to £10 million in concessional aid to reduce the risk for pension and insurance funds investing in energy access projects and to support Nigeria’s COP26 commitments.

According to the United Kingdom, the financing will assist Nigerian investors in focusing on low-carbon energy, as well as supporting off-grid and low-carbon energy projects.

The United Kingdom went on to say that the £10 million will be used to de-risk transactions and thus attract domestic institutional investment from local pension funds, insurance companies, and other financial institutions.

In addition, the fund will assist in increasing domestic financing for eligible off-grid clean energy infrastructure in Nigeria, such as solar mini-grid and home systems, clean cooking infrastructure, and SME cold storage infrastructure.

“The UK is committed to increasing both renewable energy and energy access in Nigeria, thereby driving clean, sustainable, and resilient growth,” Ford said.