Nigeria, US Sign Energy Pact

Nigeria has signed an agreement with the United States of America to improve power generation in the country through the use of renewable energy.

Under the agreement, the U.S. Trade and Development Agency will provide 323,000 dollars in technical assistance to assist the Nigeria Electricity Regulatory Commission (NERC) develop a renewable energy framework for Independent Power Producers (IPPs) in the country.

Ms Leocadia Zak, the USTDA Director, and Mrs. Ifeyinwa Ikeonu, the head of the NERC Strategy and Project Management Office, signed the agreement on behalf of their respective countries.

The agreement was the outcome of a two-day meeting of the Working Group on Energy and Investment of the U.S.-Nigeria Bi-National Commission (BNC).

The commission was established in April 2010 to assist Nigeria in areas of mutual concern, including energy and investment, agriculture and food security, good governance and transparency as well as the Niger Delta.

The Tide correspondent reports that prior to the signing of the agreement, the working group had adopted a two-page communiqué highlighting the importance of advancing renewable energy opportunities in Nigeria.

Speaking at the event, Zak noted that Nigeria was blessed with natural resources including oil and gas, yet electricity remained scarce even as profits had not been invested in ways to benefit all Nigerians.

“This grant agreement represents a mutual commitment by both the U.S. and Nigeria to continue with their cooperation to facilitate investment and improve the transparency, administration and performance of Nigeria’s power sector.

“Establishing clear and transparent requirements for renewable independent power producers investments in Nigeria will enable an environment for the U.S. private sector to compete for business in the growing market and create green jobs here at home,” she said.

Zak explained that the objective of USTDA’s assistance was to drive investment that would result in mutual economic benefits for both countries.

She added that the project would also unlock a tremendous market for U.S. companies which provided renewable energy technologies, equipment and services.

On her part, Ikeonu said the project would facilitate private investment in renewable energy as Nigeria addressed its rising demand for power.

“The implementation of a regulatory framework conducive to IPPs will enable us to propel investments in Nigeria’s renewable energy sector and help us meet our country’s rapidly growing energy needs,” she said.

The two-day meeting, involving a 47-man U.S. delegation and a 24-man Nigerian team, agreed that USTDA-funded technical assistance would be competed for under the U.S. Federal Business Opportunities.

It also agreed that the NERC would select a U.S. contractor to complete the technical assistance.

To ensure rapid results from the new pact on renewable energy, the meeting further agreed that the U.S. Department of Energy Under-Secretary, Dr. Kristina Johnston, would visit Nigeria in the shortest possible time.

Both countries also scheduled to hold another meeting in the last quarter of 2010 to launch the Niger Delta and Regional Security Cooperation Working Group of the Nigeria-U.S. BNC.