An Inter-Agency Committee comprising government partners – Federal Ministry of Power, Federal Ministry of Environment, Central Bank of Nigeria, Energy Commission of Nigeria and Bank of Industry – is working towards the establishment of NCEF, with technical assistance of Nigeria Infrastructure Advisory Facility (NIAF).
NCEF is a public-private partnership arrangement aimed at improving the prospects for the development and use of clean energy in Nigeria. When established, it will be the dedicated vehicle for resource mobilisation and targeted financing, capacity building of government and private sector actors and catalysing market development and demand creation for clean energy.
The Nigeria Clean Energy Facility (NCEF) will:
• mitigate the risks of bank lending for production, supply and use of clean energy: • increase the capacities for sustainable supply of and use of clean energy finance; • organize and coordinate public and private sector resources for the development of clean energy; • access and channel international clean energy finance; and • provide capacity building and technical assistance for clean energy value chain.
Within this context, the Ministry of Power, on behalf of the Inter-Agency Committee, with facilitation of Nigeria Infrastructure Advisory Facility (NIAF), convened the Stakeholders Workshop. The purpose was to create awareness about NCEF and promote understanding of how it will work and the roles and responsibilities of respective partners and stakeholders.
The workshop brought together key public and private sector players in the clean energy value chain to expand the dialogue and receive feedback on the NCEF. It was attended by about 60 participants representing the relevant government and private sector organisations, as follows:
Government institutions and agencies: Central Bank of Nigeria, Federal Ministry of Power, Energy Commission of Nigeria, Rural Electrification Agency, Federal Ministry of Environment, Federal Ministry of Finance and Federal Ministry of Women Affairs.
Private Sector: Ecobank, PNN Nigeria, Unity Bank Plc, NEXIM Bank, Blue Camel Energy, Bank of Industry, Better Life Programme, Diamond Bank Plc., Skye Bank, Sterling Bank, Infrastructure Bank Plc, Enterprise Bank, Zenith Bank and Nigeria Electricity Supply Corporation Limited (NESCO).
Multilateral agencies: Africa Finance Corporation , GIZ, Africa Development Bank, Japan International Cooperation Agency, Canadian International Development Agency, European Union.
Civil society organisations: Women Environmental Programme, International Centre for Energy, Environment and Development, Nigeria Environmental Study Team, Ideal Development Concepts and Agricultural Policy Research Network (APRNet).
Government partners restated their commitment to establishing NCEF within the shortest possible time.
The Minister of Power, in a speech read by a Director in the Ministry, stated, “…In an effort to increase the present level of energy mix, government is focusing more attention on renewable energy sources which are not only abundant in the country but have a higher rate of economic viability. In light of these developments, the issue of clean energy is on the front burner of the Ministry’s programmes….” And that “we are proud to be associated with NCEF”.
The Minister of Environment, represented by a Director in the Ministry, remarked “this (NCEF) is good news….”
The Minister of Finance, through her representative, stated “this (NCEF) is a critical meeting point” (for several objectives) and that “it is something that the Ministry of Finance supports……..”
The Director-General, Energy Commission, through his representative, stated: “this activity (NCEF) tallies with the activities of our agency…….”
Central Bank of Nigeria, represented by Deputy Director, Development Finance Department, remarked “NCEF is a project that we support wholeheartedly…….” The Managing Director, Bank of Industry, through her representative, stated “we are committed to this initiative (NCEF)…. we have been part of it from the onset….”
Participants deliberated and agreed that:
- NCEF is justified, timely and strategic for Nigeria’s economic and social development.
- NCEF has the full support of the stakeholders.
- NCEF is an integral element of the policy responses for improving the environment for private investment in and use of clean energy.
- The regulatory framework is crucial for the development of clean energy markets, particularly in the areas of specifying and enforcing standards for clean energy products and services.
- NCEF will promote energy diversification, energy security and sustainability by enhancing energy efficiency and the development of renewable energy.
- NCEF will tremendously complement and reinforce existing and future programmes and initiatives directed at expanding access of rural women, households and small businesses to clean and alternative energy.
- Inter-Agency Committee extends consultations, and particularly engage the banking sector including deposit money banks, microfinance banks and other finance agencies.
Following discussions and review of the NCEF, as presented by the Inter-Agency Committee, it was resolved:
- That NCEF be established.
- That a Steering Committee – comprising key ministries, departments and agencies – be constituted to drive the process.
- That NCEF has its Secretariat in Central Bank of Nigeria, in consultation with the Federal Ministry of Finance.
- That the Inter-Agency Committee intensifies the process of seeking and obtaining authorisation for the establishment of NCEF culminating in the transmission of a Request Memorandum to the Federal Executive Council(FEC) in the shortest possible timeframe, preferably in the first quarter of 2014.