The government of President Muhammadu Buhari has yesterday signed a Joint Development Agreement (JDA) with key investors with the view to securing investment into the 100 MW (DC) Nova Scotia Power plant located in Dutse in the Northern Nigerian state of Jigawa.
Signing the agreement, the stakeholders said the project has the potential to significantly contribute to the plan of the authorities of the State of Jigawa to attract USD 2 billion of investments into Jigawa and implement President Buhari’s plans to provide jobs and economic opportunities especially for the nation’s youth.
The signing ceremony of the JDA was held in the presence of the deputy governor of Jigawa state, Ibrahim Hassan Hadejia; Borge Brende, the visiting Norwegian Foreign Minister, Akinwumi Adesina, president of the African Development Bank (AfDB) and Chairman of Africa50’s Board of Directors as well as officials from the Nigerian Bulk Electricity Trading among others.
The JDA which was signed with Africa50, an African Infrastructure Fund sponsored by AfDB and more than 20 African States; Norfund, the Norwegian Investment Fund for Development Countries, and Scatec Solar, the deputy governor of Jigawa said, “New local power generation capacity is a key element to attract sizeable investment into the State and region, especially into new industries such as light manufacturing and agricultural processing”.
Recently, the AfDB appointed MCB Investment Management (MCBIM), a subsidiary of MCB Capital Markets, as fund manager for its first multi-jurisdictional Fixed Income Exchange Traded Fund (ETF) in Africa.
Speaking at the ceremony, Akinwumi Adesina, president of the AfDB and Chairman of Africa50’s Board of Directors, said “I am pleased that Africa50 is already making its first investment, which fits in squarely with our priority to light up and power Africa,” adding that “Africa50 has been created by African governments, including Nigeria, the AfDB and institutional investors to mobilize private sector for funding infrastructure projects in Africa”.
Apart from the three equity investors, the American Overseas Private Investment Corporation (OPIC), Islamic Development Bank and the AfDB are expected to be senior debt providers for the project.
With an estimated investment of USD 150 million, a production of 200,000 MWh of electricity per year and 120,000 tons of CO2 emissions avoided annually, the stakeholders said “the Nova Scotia solar plant will help Nigeria rapidly increase its generation capacity, provide economic opportunities, fight desertification caused by climate change, and contribute to fulfilling Buhari’s commitments to develop renewable energy as part of the Paris Climate Change Agreement.