RMI and InfraCorp Formalize Partnership with Landmark MoU to Scale Clean Energy Infrastructure in Nigeria
Fostering an investment-ready pipeline of clean energy infrastructure in Nigeria for sustainable, resilient, and inclusive projects
Abuja, Nigeria – October 26, 2023, RMI, founded as Rocky Mountain Institute, and the Infrastructure Corporation of Nigeria (InfraCorp), a US$15 billion government-backed, privately-managed infrastructure development and financing vehicle, signed a Memorandum of Understanding (MoU) on the sidelines of the 29th Nigeria Economic Summit Group (NESG) to support the implementation of Nigeria’s clean energy infrastructure strategy. Established and co-owned by the Central Bank of Nigeria (CBN), Africa Finance Corporation (AFC), and Nigeria Sovereign Investment Authority (NSIA), InfraCorp is a dedicated privately managed infrastructure and financing vehicle that harnesses opportunities for Nigeria’s infrastructure development by structuring, executing and managing end-to-end bankable projects in that space.
In many countries, the lack of a bankable, investment-ready pipeline of clean energy projects is one of the major bottlenecks in attracting private capital to the sector. To bridge the energy transition gap in Nigeria and scale the deployment of clean energy projects, InfraCorp and RMI will collaborate on establishing a Project Preparation and Development Facility (PPF) and jointly develop climate finance initiatives to mobilize competitive long-term local currency funding. Their partnership will also focus on building local capacity to unlock and accelerate climate finance at scale to build lasting national capacity that will ultimately maximize adaptation and mitigation outcomes.
Ije Ikoku Okeke, RMI Managing Director of Catalytic Climate Capital and the Global South, emphasized: “Project preparation, local currency funding, and capacity development are crucial to delivering bankable, investment-ready, and environmentally aligned projects and are critical enablers of clean energy infrastructure development. The focus areas outlined in the partnership are aligned with RMI’s Catalytic Climate Capital (C3) program, and its goal of supporting the development of 10 gigawatts of clean energy over three years in the Global South and mobilizing US$15 billion from the private sector to support the energy transition.”
In Nigeria and other emerging markets and developing economies, there is no shortage of early-stage clean energy projects vying for investors’ capital. However, the majority of these projects fail in the “project preparation” stage due to the lack of a supportive investment environment and managing project development through to the point of financial close. Early-stage funding support is therefore critical to catalyze additional investment from the private sector.
“This MOU commits us to work together to support the development of bankable and sustainable national infrastructure projects,” said Dr. Lazarus Angbazo, Managing Director/Chief Executive Officer, InfraCorp. “InfraCorp and RMI will collaborate on project development finance and financial market initiatives to allow InfraCorp to provide or mobilize financial resources and infrastructure investment for stimulating economic activity and reducing poverty through clean energy solutions.”
Renewable energy investment is growing in Africa, but not quickly enough. Faster, better innovative funding mechanisms are needed to drive investment at the speed and scale needed. PPDFs – along with financial innovations, building local capacity and ensuring a strong enabling environment, among other interventions – can help accelerate investment in clean energy.
“RMI has been present in Nigeria for the past five years, making a significant contribution to the rapid deployment of clean energy projects in the country. This partnership and the planned PPF are important as they enable early identification and mitigation of potential risks, ensuring optimal resource allocation, and facilitating informed decision-making at every stage of the project lifecycle,” said Suleiman Babamanu, RMI Nigeria Program Director. “Through meticulous planning and strategic foresight, these initiatives can pave the way for successful implementation at scale, enabling Nigeria to achieve its sustainable developmental goals and improve the lives of its citizens.”
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Notes to Editors
RMI’s Ije Ikoku Okeke, Managing Director of Catalytic Climate Capital and the Global South is available for comment.
RMI, founded in 1982 as Rocky Mountain Institute, is an independent nonprofit that transforms global energy systems through market-driven solutions to align with a 1.5°C future and secure a clean, prosperous, zero-carbon future for all. We work in the world’s most critical geographies and engage businesses, policymakers, communities, and NGOs to identify and scale energy system interventions that will cut greenhouse gas emissions at least 50 percent by 2030. RMI has offices in Basalt and Boulder, Colorado; New York City; Oakland, California; Washington, D.C.; and Beijing. More information on RMI can be found at www.rmi.org or follow us on Twitter or Facebook @RMIAfrica.
InfraCorp is a government-backed, privately-managed infrastructure investment vehicle established and co-owned by the Central Bank of Nigeria (CBN), Africa Finance Corporation (AFC) and Nigeria Sovereign Investment Authority (NSIA) (“the Promoters”) and managed by its own Board and management.