The International Finance Corporation (IFC) is investing $70 million in five Nigerian firms to help the country enhance distributed access to renewable energy through Mission 300.
Nigeria’s finance minister and coordinating minister of the economy, Wale Edun, made this announcement during the presentation and formal launch of the Country Private Sector Diagnostic (CPSD) by the World Bank group, which includes the World Bank, IFC and the Multilateral Investment Guarantee Agency (MIGA) in Abuja on Thursday.
Edun praised IFC’s backing for Nigeria’s various private sector initiatives, pointing to the $1.2 billion funding for Indorama fertilizer, $70 million designated for FCMB for SME financing, as well as support under mission 300, which is being led by the World Bank and the Africa Development Bank (AfDB).
Mission 300 is a joint effort between the World Bank and the African Development Bank focused on providing electricity to 300 million African individuals by 2030. This ambitious initiative aims to tackle the severe energy deficit on the continent, where around 600 million people are currently without access to electricity.
“Essentially, the $70 million IFC support to five Nigerian companies is part of the mission 300 and the newest transaction to be done since the announcement of that project,” Edun stated.
He also noted the security improvements, which have increased oil production, boosted revenue, and a stable economic environment encouraging private sector investment.
He identified another significant aspect of the reforms as the intention to assist the poorest and most vulnerable citizens in light of the rising cost of living, which he described as “an unavoidable part of transitioning from an inefficient, rent-seeking regime to one that is based on market principles.”
While acknowledging that these reforms have led to spikes in inflation, elevated living costs, and weakened foreign currency exchange, Edun assured that the government remains committed to boosting food production, lowering food costs, increasing availability and affordability, and implementing social safety net programs for the underprivileged, with assistance from the World Bank.
