The Federal Government and the French Development Agency (AFD) have inked a grant agreement of €25 million for the Northern Corridor Project, a power project that is jointly funded by the European Union (EU) and the AFD.
The Northern Corridor Project, being implemented by the Transmission Company of Nigeria (TCN), aimed at strengthening a low-carbon economic growth in West Africa by improving the quality of the electricity network in Nigeria and supporting the development of a regional electricity market under the West African Power Pool (WAPP).
The Minister of State for Budget and National Planning, Prince Clem Agba, and the AFD Country Director in Nigeria, Xavier Muron, signed the agreement on Wednesday in Abuja in the presence of the Ambassador of France to Nigeria, Emmanuelle Blatmann, and the Head of Cooperation at the European Union Delegation to Nigeria and ECOWAS, Ms. Cecile Tassin-Pelzer.
A statement on Wednesday by the Embassy of France in Nigeria, explained that the specific objectives of the project, in line with the Nigerian Energy Transition Plan (ETP) are to: reinforce globally the North-west network and develop access to electricity for the population; help evacuate/distribute the solar generated power from future projects in the north; participate in the WAPP interconnection project with Niger Republic.
The project will build more than 800km of 330 kV double circuit transmission lines and construct or upgrade 13 substations.
The statement further read: “The grant agreement signed today represents the EU’s contribution to the project, while the AFD contribution of €202 million was signed in December 2020. The total cost of the project is around 238 million euros including a 12 million euros contribution from TCN.”
The expected impacts of the project include: 5GW additional evacuation capacity to be created under the project, potential transmission of 17TWh additional electricity every year, possibility of several millions of people to have access to electricity and a better electricity service on a short term, and creation of 600 jobs (500 during the construction phase and 100 in the operation phase).
The AFD Country Director in Nigeria, Mr. Xavier Muron, highlighted the importance of such a project as a technical enabler for the integration into the grid of the expected solar farms in the North-west part of the country.
He noted that poor transmission network has been a significant bottleneck in many countries
Speaking at the ceremony, the Minister of State for Budget and National Planning, said: “This project will help TCN to operationalize its ‘Transmission Expansion Plan’, through the construction of additional transmission lines and substations across nine states in the northern part of the country – Niger, Kebbi, Sokoto, Kaduna, Kano, Jigawa, Bauchi and Nassarawa.”
He noted that poor transmission network has been a significant bottleneck in many countries for the achievement of mix diversification.
According to Ambassador of France to Nigeria, Blatmann, “France is committed to helping Nigeria achieve its commitments on climate change in line with the Paris agreement.”
Speaking on behalf of the EU, the Head of Cooperation, Cecile Tassin-Pelzer, said: “We appreciate this Team Europe collaboration with the Government of Nigeria, which is a concrete example of how the EU Global Gateway can contribute to major investments in infrastructure development.”