Nigeria Announces $5.8 Billion Deal To Build Country's Largest Power Plant

Nigeria Announces $5.8 Billion Deal To Build Country's Largest Power Plant
User Avatar
Updated 9 months ago

Nigeria is building its biggest power plant and it’s going to be hydroelectric. The government announced this week that they will be investing $5.8 billion into the massive power plant that should be completed in the next six years. By creating this new facility, it should help extend green power to rural areas as the country attempts to move away from fossil fuels.

The Mambila hydroelectric power plant will be located in the state of Taraba in Nigeria. It will feature a capacity of 3,050 megawatts with four dams that are up to 500 feet tall. The government itself will be financing 15 percent of the funding itself while 85 percent is coming from the Chinese Export-Import Bank.

Babatunde Raji Fashola, the Minister of Power, Works, and Housing in Nigeria, explained the benefits of the new facility in a statement: “During its construction and upon completion, and subsequent operation, it will have considerable positive impact on electricity supply nationwide, productivity, employment, tourism, technology transfer, rural development, irrigation, agriculture and food production in the area and beyond.”

For more than 40 years, Nigeria has been attempting to get this power plant up and running. Back in 1972, consultants recommended the construction of a hydropower facility, but there were attempts made with little effort. Back in 2007, Nigeria awarded $1.4 billion to a couple of Chinese contractors for a power plant at 2.6 gigawatts of capacity. The deal ultimately fell through.

One year ago, a breakthrough was finally achieved. Nigerian president Muhammadu Buhari visited China and had higher-level discussions with Xi Jinping and other officials. China would oversee most of the production and would finance most of the project. Over a series of meetings, total costs was dropped from $6.6 billion to $5.8 billion. This would be part of many other projects Buhari promised to improve Nigeria, such as creating more roads and housing.

There are some concerns in building the over three-gigawatt power plant. According to the Nigerian government, it will displace 100,000 people. Part of the deal will be to pay these people and offer them resettlement. While the aid will help, there’s still a problem with violence among ethnic groups in the area and displacing this many people could cause more issues. There’s also the concern of how the country will pay back the 85 percent to the Chinese bank.

Worries haven’t fazed State Governor Darius Dickson Ishaku. According to CNN, he’s hoping that the project has the “potential to boost tourism and agriculture.” There’s also the importance of cutting down the 40 percent mark of Nigerian residents that don’t have access to electricity. Renewable energy sources like this hydropower plant is one of the better options on the table, and the demand for it could finally push development to the finish line.

RecircNewsPrince's Paisley Park Promises To Remain Meat-Free In His Honor

What can and can't be served at Paisley Park has been contested in the past, as Prince had very specific rules when he was alive. But on this issues, the museum and estate are standing strong.

By Aimee Lutkin
2 days ago
RecircNewsIKEA Vows To Eliminate All Single-Use Plastic By 2020

Ikea announced multiple renewable targets that they plan to reach by 2030, which includes removing single-use plastic over the next few years, offering more home solar solutions, and to reduce their greenhouse gases by 80 percent compared to their levels in 2016.

By Brian Spaen
3 days ago
RecircNewsThe Creative Way FIFA Is Offsetting The World Cup's Carbon Footprint

Millions of soccer fans around the world will travel to Russia this summer to watch The World Cup. FIFA is planning to minimize the event’s carbon footprint by asking fans to join an online campaign to reduce CO2. Fans who sign the pledge are eligible to win two tickets to the final game.

By Desiree Kaplan
4 days ago
RecircNewsSolar Technology Costs Tumble Further With China's Industry Shifts

China is slowing down local growth in the solar industry, which may not sound like progress, but the entire world benefits. Lower costs from Chinese manufacturers exporting their products will create higher rates of installation around the world.

By Brian Spaen
5 days ago
Stay Green
Sign up for our newsletter