- This partnership will mobilize investments through innovative financing solutions to scale up private sector-led clean energy generation and distribution in Nigeria.
11 June 2024: RMI, founded as Rocky Mountain Institute, and the Nigeria Sovereign Investment Authority (NSIA), a globally focused investment institution set up to receive, manage, and invest funds on behalf of the Nigerian Federation, have signed a memorandum of understanding (MoU) to progress climate finance, develop clean energy projects, and propel the broader energy transition goals in Nigeria.
This landmark agreement is set to pave the way for financing clean energy projects in Nigeria, with a particular focus on scaling up private sector-led initiatives in renewable energy generation and distribution, including solar minigrids, embedded generation, battery energy storage systems, e-mobility, and productive use of energy projects in the agriculture value chain.
This strategic partnership is a critical step towards a sustainable future for Nigeria and sets another precedent for collaborative efforts in climate action and energy transition globally. The objectives of the MoU include:
- Mobilization of climate finance: Jointly mobilize and channel funds towards initiatives to reduce greenhouse gas emissions, enhance energy efficiency, and foster sustainable economic growth.
- Advancement of clean energy projects: Collaborate on the development and execution of clean energy projects, including solar and other renewable energy sources, to ensure a reliable, affordable, and sustainable energy supply in
- Acceleration of energy transition: Implement strategies to accelerate Nigeria’s transition from fossil fuels to renewable energy, aligning with global efforts to combat climate change and reduce carbon footprints.
- Capacity building and knowledge exchange: Promote the exchange of expertise and best practices between NSIA and RMI, including technical support, workshops, and joint research initiatives to build local capacity in climate finance and clean energy technologies.
- Project development and implementation: Identify and support high-impact projects that align with Nigeria’s climate and energy objectives, including renewable energy infrastructure, energy efficiency measures, and sustainable transportation solutions.
While speaking at the signing ceremony, Aminu Umar-Sadiq, the managing director and chief executive officer of NSIA shared that “this MoU is another indication of our commitment to a greener and more sustainable future for Nigeria. Partnering with RMI enables us to harness international expertise and innovative approaches to climate finance and energy transition. Together, we will deliver impactful climate adaptive solutions that stimulate economic growth. By combining our resources and expertise, we aim to unlock substantial investment opportunities and implement transformative energy projects that will benefit the people and the environment.”
RMI CEO Jon Creyts expressed his enthusiasm about the collaboration, stating, “Catalyzing climate finance for the energy transition demands a united front. Collaboration should not be seen as a choice but a necessity in realizing our commitment to close the energy access gap in Nigeria. RMI stands resolute in its dedication to working hand in hand with NSIA forging a sustainable future together.”
Ije Ikoku Okeke, RMI managing director of Catalytic Climate Capital and the Global South, added, “accessible, low-cost local currency finance is the cornerstone of scaling decentralized energy resources in Nigeria and achieving our energy transition targets. By fostering an environment where financing is affordable and aligned with local needs, we empower the people, drive economic growth, and accelerate the shift towards a sustainable energy landscape. Signing this MoU with NSIA marks a crucial step towards accelerating the transition, and we are poised to unlock significant capital, catalyzing sustainable solutions that not only combat climate change but also drive socio-economic progress.”
Suleiman Babamanu, RMI Nigeria program director emphasized, “Empowering Nigeria’s renewable energy revolution and energy transition requires more than just vision — it demands accessible and affordable local currency financing. By combining RMI’s expertise in transforming energy with NSIA’s commitment to local currency financing, we are not only building a greener tomorrow but also empowering local communities to thrive. Together, we are redefining what’s possible and proving that sustainable energy solutions can be both environmentally friendly and financially viable.”
The partnership signifies a significant step toward realizing Nigeria’s clean energy ambitions and accelerating supply of bankable projects through preferred financial investment instruments while addressing the challenges of climate change.
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About NSIA: The Nigeria Sovereign Investment Authority (NSIA) manages Nigeria’s sovereign wealth fund with a focus on building a savings base for future generations, enhancing infrastructure development in Nigeria, and promoting fiscal stability in times of economic stress. NSIA invests in a diversified portfolio to generate sustainable long-term returns and support national development goals through its three ring-fenced funds, the Stabilization Fund, the Future Generations Fund, and the Nigeria Infrastructure Fund. For more information, visit: www.nsia.com.ng.
About RMI: JRMI, 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 climate pollution at least 50 percent by 2030. RMI has offices in Basalt and Boulder, Colorado; New York City; Oakland, California; Washington, D.C.; Abuja, Nigeria; and Beijing. For more information, visit: www.rmi.org.
