From Charity Nwakaudu, Abuja
The Minister of Foreign Affairs, Ambassador Yusuf Maitama Tuggar, has said that the affordability of energy resources to Nigerians, remain top priority in the present administration.
Amb Tuggar stated this at second edition of the on-going African Natural Resource and Energy Investment Summit, AFNIS, in Abuja.
Represented by the Director, Economic,Trade and Investment of the Ministry Amb. Bolaji Akinremi, said it was imperative to add the institutionalisation of Ministerial Summit such as the AFNIS in the development of collective capacity.
“It is important to state that availability, sustainability and affordability of energy resources to the average citizen and businesses should be of utmost priority in order to achieve that envisage development of the economy.”
Amb Tuggar explained that It is noteworthy to mention that deliberation on mining and energy resources in the African sphere is crucial to the overall development of the region.
“Therefore, it is necessary for all stakeholders be it government or private, Industry captains to converge from time to time to chart course for a more unified robust approach to unlock the potentials of these God given mineral resources for the welfare of our citizens,” Amb Tuggar added.
Speaking in the same vein, Senior Director, Africa Finance Corporation, AFC, Taiwo Adeniji, stressed it is estimated that Africa requires about US$250 billion annually to close the climate financing gap and that Africa holds the key to the world transition of the energy sector.
“African countries, particularly Nigeria, should consider utilising innovative financing instruments and mechanisms to attract private sector financing. Instruments such as Social Bonds, Green Bonds and Loans, Sustainability Bonds and Loans, Cabon Pricing, Debt-for-Climate Swaps, etc. Can and should be deployed to attract private financing”
Adeniji emphasised that one of the key paths towards the achievement of net-zero is significantly scaling up investments in green projects.
“Africa indeed holds the key to the world’s transition to a sustainable future, being the home to significant proportions of the key transition metals, yet today it not only pays the price for the climate indiscretion of the past, but also struggles in accessing the funds it needs to change the course for a better future”
According to him, “At AFC we believe the most efficient way to transform the continent, without further aggravating the climate situation, is to increase the amount of green energy available within Africa and at the same time develop the industrial capacity of the continent.
“It is estimated that Africa requires about US$250 billion annually to close the climate financing gap. High volumes of finance is required for sustainable infrastructure (clean energy and transport systems, green buildings, etc.).
“The bulk of these resources are expected to come from the private sector. Thus, African governments have a responsibility to design and implement conducive policies and regulations to attract private investments, particularly in priority sectors for climate action and green growth.
“Multilateral Development Banks (MDBs) such as the World Bank Group, and the African Development Bank Group, and Development Financing Institutions (DFIs), such as the African Export-Import Bank (Afreximbank) and the AFC, have key roles to play in attracting financing for green investments into Africa,” Adeniyi noted.
“In addition to the commercial financing that they provide, those that have the capacity and resources can provide grants, concessionary finance, credit and risk guarantees, etc., that support capacity development and de-risk African investments thereby making them attractive to private investors,” he explained.