The United States to commit $1 Bilion into Nigeria's power sector

The United States of America has said it will pump one billion dollars into Nigeria's power sector.

The plan comes just a day after the US president Donald Trump put a telephone call through to President Muhammadu Buhari.

Power Africa, an initiative by the US government to strengthen Africa's power system is aimed at increasing electricity access and adding more than 30,000 megawatts of cleaner, more efficient energy development in sub-Saharan Africa.

Speaking a press conference in Abuja, the programme’s coordinator, Mr Andrew Herscowitz said the US was committed to spending billions of dollars in funding Nigeria's energy projects.

Herscowitz said the Power Africa which was launched by former US President Barrack in 2013 to boost electricity access in the sub-Saharan region.

He said more than 30,000 megawatts of cleaner, more efficient energy will be made available for development in sub-Saharan Africa.

He also said the project also targets unlocking the substantial wind, solar, hydro power, natural gas, biomass, and geothermal resources on the continent.

“Since Power Africa was launched, U.S. Trade Development Agency has committed approximately 6.5 million dollars in funding for 10 activities supporting Nigeria’s energy sector, which could leverage up to 2.7 billion dollars in investment," Herscowitz said.

“It has advanced 50 million dollars in financing from the Oversea Private Investment Corporation (OPIC) to Lumos, a Nigeria-based solar energy company, to scale up it’s off grid solar power service to about 200,000 Nigerian homes and businesses," he said.

“Power Africa has supported power companies in the country to the tune of 100 million dollars capital expenditure credit enhancement facility with a corresponding 6.5 million dollars in technical assistance.

“And (supported) another 1.5 million dollars for limited commodity to turn around the DISCOS,” he said.

Herscowitz also said functional power distribution companies were critical to the development of the country while well functioning DISCOs are critical to the delivery of electricity in Nigeria.

He said: “If the DISCOs do not work, the energy sector as a whole does not work."

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