U.S. government awards grant to boost power supply in Nigeria

by Akeem Alao

The U.S. Trade and Development Agency has awarded a grant to NNPC Gas and Power Investment Company LTD (GPIC) to provide the technical, economic and financial analysis necessary for the development of a 1,350-megawatt gas-fired power plant in Abuja.

While disclosing this in the country’s Federal Capital Territory on Thursday 13th February, 2020, Thomas R. Hardy, USTDA’s Acting Director, stated that the project would utilize indigenous gas resources to address the growing demand for power in the Federal Territory.

GPIC selected the U.S. company Continuum Associates LLC to conduct the study. GE International Operations (Nig.) Ltd will also contribute to the project.

“This USTDA feasibility study will provide the informed analysis needed to address critical energy generation in Nigeria,” said Thomas, who signed the grant during the Nigeria International Petroleum Summit in Abuja.

“It will also build upon USTDA’s commitment to working with our Nigeria partners to develop and expand the nation’s domestic gas sector,” he explained.

Witnessing the signing, U.S Ambassador Mary Beth Leonard, said, “This is a special day for our two nations and the enduring bilateral relationship that binds together the United States and Nigeria.”

She added that the outstanding project would join dozens of other high-profile energy sector projects that USTDA is supporting across the country.

According to Mallam Mele Kyari, Group Managing Director of NNPC, USTDA’s grant would offer opportunities to concretize arrangements to provide stable power supply to Abuja in the foreseeable future.

“This plant will be a critical boost to improve Nigeria’s energy deficit and provide much-needed power for the country,” said Mohammed Mijindadi, GE’s Managing Director GE Gas Power, Nigeria and Anglophone West Africa

“We believe the planned project will provide important relief to the power deficit situation in and around the Federal Capital Territory region, and Northern Nigeria,” he added.

Since 1992, USTDA has funded more than 65 activities in Nigeria, which have leveraged nearly $13 billion in financing. The project advances the U.S. government’s Power Africa, Prosper Africa and Doing Business in Africa Initiatives.

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