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Energy Transition: Osinbajo proposes Debt-for-Climate Swap Deal

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Vice President Yemi Osinbajo has proposed a Debt-For-Climate (DFC) Swap deal in order to ensure a just energy transition for African countries.

Laolu Akande, Senior Special Assistant to the President on Media and Publicity, Office of the Vice President, disclosed this in a statement on Friday in Abuja.

Osinbajo is in Washington, U.

S.  to seek global partnerships and support for Nigeria’s recently inaugurated Energy Transition Plan(ETP).

The vice president delivered a lecture on Thursday explaining the DFC concept on a just and equitable energy transition for Africa at the Center for Global Development in Washington D.C, U.S.

“Debt for climate swaps is a type of debt swap where bilateral or multilateral debt is forgiven by creditors in exchange for a commitment by the debtor to use the outstanding debt service payments for national climate action programmes.

“Typically, the creditor country or institution agrees to forgive part of a debt, if the debtor country would pay the avoided debt service payment in a local currency into an escrow or any other transparent fund and the funds must then be used for agreed climate projects in the debtor country.

“Increase the fiscal space for climate-related investments and reduce the debt burden for participating developing countries.

“For the creditor the swap can be made to count as a component of their Nationally Determined Contributions (NDC).”

According to Osinbajo, there are significant policy actions necessary to make the deal acceptable and sustainable.

The vice president also proposed the greater participation of African countries in the Global Carbon Market while exploring financing options for energy transition.

He said there was a need to take a comprehensive approach in working jointly towards common goals, including the market and environmental opportunities presented by the financing of clean energy assets in growing energy markets.

“In addition to conventional capital flows both from public and private sources, it is also essential that Africa can participate more fully in the global carbon finance market.

“Currently, direct carbon pricing systems through carbon taxes have largely been concentrated in high and middle-income countries.

“However, carbon markets can play a significant role in catalysing sustainable energy deployment by directing private capital into climate action, improving global energy security, providing diversified incentive structures, especially in developing countries, and providing an impetus for clean energy markets when the price economics looks less compelling – as is the case today.”

Osinbajo encouraged developed countries to support Africa to develop into a global supplier of carbon credits, ranging from bio-diversity to energy-based credits.

The vice president said that the central thinking for most developing countries was the issue of a just transition with two, not one, existential crises, the climate crisis and extreme poverty.

“The clear implication of this reality is that our plans and commitments to carbon neutrality must include clear plans on energy access if we are to confront poverty.

“This includes access to energy for consumptive and productive use and spanning across electricity, heating, cooking, and other end-use sectors.

“Nearly 90 million people in Asia and Africa who had previously gained access to electricity can no longer afford to pay for their basic energy needs; the inflationary pressures caused by the COVID-19 pandemic and other macroeconomic trends have been further exacerbated by the ongoing war in Ukraine.’’

He cautioned that limiting financing of gas projects for domestic use would pose a severe challenge to economic development, delivery of electricity access and clean cooking solutions, and the scale-up and integration of renewable energy into the energy mix.

The vice president said that ETP was designed to tackle the dual crises of energy poverty and climate change and deliver SDG-7 by 2030 and net-zero by 2060 while concentrating on the provision of energy for development, industrialization, and economic growth.

Osinbajo identified some double standards evident in the response to the current energy crisis by many countries in the global North.

“Today excluding South Africa, the remaining one billion people in Sub-Saharan Africa are serviced by an installed capacity of just 81 gigawatts. Sub-Saharan Africa has contributed, based on information that is already out there, less than one per cent of cumulative CO.2 2 emissions.

“By comparison, the U.S.  has an installed capacity of 1,200 gigawatts to power a population of 331 million people, while the UK has 76 gigawatts of installed capacity for its 67 million people.

“The per capita energy capacity in the UK is almost fifteen times than in Sub-Saharan Africa,” he said.

The vice president then took questions around the theme of a just energy transition and the recently launched Nigerian Energy Transition Plan.

Members of the Energy Transition Implementation Working Group (ETWG) present at the lecture included the Minister of Works and Housing, Babatunde Fashola, Minister of Finance, Budget and National Planning, Zainab Ahmed and Minister of Environment, Mohammed Abdullahi.

Others were Director-General of the National Council on Climate Change, Salisu Dahiru, Nigeria’s Ambassador to the U.S., Uzoma Emenike, Special Representative of the UN Secretary-General for Sustainable Energy for All (SEforALL), Ms Damilola Ogunbiyi.

The Managing Director of Niger Delta Power Holding Company Limited, Chiedu Ugbo and other senior government officials were also at the lecture.(NAN)

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AfDB Signs $75m Loan Agreement to Boost Indorama’s Fertilizer Production, Export Capacity

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The African Development Bank (AfDB), has signed a 75 million dollar loan agreement with Nigeria’s Indorama Eleme Fertilizer and Chemicals Limited.

The bank announced this in a statement issued on its website late Thursday.

According to the statement, the loan will enable Indorama to increase its fertilizer production and develop a port terminal for exports.

The statement also said that the loan would help in supporting food production and food security across regional and international markets while fostering job creation in Nigeria.

It said that the expansion would include the development of a third urea fertilizer production line and a new shipping terminal at Indorama’s facilities in Port Harcourt.

“The new production line is expected to have an annual capacity of 1.4 million metric tons of urea, one of the most widely used fertilizer worldwide.

“Indorama’s two operational urea fertilizer lines serve Nigeria’s domestic market.

“It supports the country’s agricultural sector, which accounts for a quarter of its Gross Domestic Product (GDP) and employs about a third of its labour force.

“The new production line and terminal, which will help meet growing global demand for fertilizer, is expected to create up to 8,000 direct and indirect jobs in Nigeria”, the statement said.

The statement also quoted the Acting Director of Industrial and Trade Development Department, AfDB, Ousmane Fall, as commending the partnership.

Fall said the bank was proud of its continued partnership with Indorama, the IFC, and other lenders on this critical project.

He said the partnership aligned with the bank’s strategic priorities to Feed  and industrialise Africa, while generating significant development outcomes in Nigeria.

Meanwhile, Manish Mundra, Group Director for Africa, Indorama Corporation said the establishment of the fertilizer plant underscored Indorama’s unwavering commitment to Nigeria’s industrial growth, economic diversification, and leveraging its strategic geographic location.

“This landmark financing represents a pivotal moment in Nigeria’s journey towards becoming a major player in the global fertilizer market.

“With this third line, Nigeria is prepared to significantly ramp up its export capacity, thereby, enhancing its position as a key exporter of fertilizer to Africa and the world.

“Furthermore, the establishment of this fertilizer plant will not only address critical issues such as broader food security but will also stimulate agricultural growth and create employment opportunities in Nigeria,” he said.

Reports says that the AfDB’s loan follows a strategy to support investment in private sector development to promote the growth of the real sector.

The 75 million dolllars loan is part of a 1.25 billion dollars facility arranged by IFC.

The financing package includes a 215.5 million dollars loan from IFC’s own account, a 94.5 million dollars loan through the Managed Co-Lending Portfolio Programme (MCPP), and 940 million dollars in parallel loans mobilised from other development finance institutions and commercial banks.

Some of the banks include the AfDB, Bangkok Bank, British International Investment, Citibank, Deutsche Investitions- und Entwicklungsgesellschaft (DEG), DZ Bank, Emerging Africa Infrastructure Fund (EAIF) and Rand Merchant Bank.

Others are Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO), Export-Import Bank of India (India Exim Bank) and Export-Import Bank of Korea (KEXIM).

The Standard Bank Group, Standard Chartered Bank, and the United States International Development Finance Corporation (DFC) are also part of the banks.(NAN)

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NSCDC Arrests 3 Suspects with 1,625 Litres of Adulterated Diesel

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The Anambra Command of the Nigeria Security and Civil Defence Corps (NSCDC) has arrested three suspects with 1,625 litres of adulterated diesel.

The NSCDC Commandant in Anambra, Olatunde Maku, told newsmen on Friday in Awka, that the suspects were arrested on March 23 along Atani Road, in Odekpe, Ogbaru Local Government Area of the state.

He said that his team arrested Oluchukwu Okeke, 28, from Ogbaru in Anambra; Emeka Chukwuma, 34, also from Ogbaru in Anambra; and Ifunanya Ike, 29, from Mbano in Imo state.

According to Maku, they were conveying 65 kegs of 25 litres each of suspected adulterated diesel, estimated to be 1,625 litres in four different vehicles.

He said that the vehicles were two shuttle buses, a white-colored bus with registration number AWK429XY and another ash-coloured bus with registration number GDD277XB.

“This arrest was made possible in collaboration with the Nigerian Navy, and preliminary investigation revealed that the illegally refined products were loaded at Ogbakuma and headed to Okoti community, both in Ogbaru area.

“I want to commend the Nigerian Navy for their support in the fight against criminality in the state.

“This type of synergy is what is needed to wage a full-scale war against perpetrators of this heinous crime.

“NSCDC, as the lead agency in the protection of critical national, state, and local government assets and infrastructure, is known for its zero tolerance in crude oil theft and illegal bunkering activities.

“We remain focused on freeing Anambra state of illegal petroleum products racketeering and other related criminalities,” he said.

Maku added that the suspects would be arraigned in court as soon as investigations were completed.

He called on members of the public to assist the command in its renewed vigour to stamp out illegal oil refining activities in the state through the provision of intelligence on illegal oil bunkering activities within their domains. (NAN)

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Good Friday: Catholic Bishop urges Leaders, Nigerians to Emulate Christ’s Sacrifice

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As Christians celebrate the crucifixion of Jesus Christ (Good Friday), the Bishop, Catholic Diocese of Oyo, Most Rev. Emmanuel Badejo, has urged leaders and Nigerians to emulate Christ’s sacrifice.

Badejo made the remark in his Good Friday message made available to Newsmen on Friday in Ibadan.

Badejo enjoined all leaders, people in authority and Nigerians to emulate Jesus in order to improve society and institutions.

The catholic bishop emphasised that Good Friday teaches us the best qualities of leadership in service, humility and love.

He noted that Good Friday represents all the challenges and problems in life, at work, in family and country at large.

According to him, those problems will be solved not just by praying, but by serious, honest and selfless efforts by everyone to do good and oppose sin and evil.

“Nigeria is not beyond repair, but it is righteousness that exalts a nation.

“Good Friday is the day on which Jesus made the ultimate sacrifice, giving His life on the cross for the salvation of the world.

“That is exactly what is good about it, even though his suffering and death are painful and unjust.

“Jesus Christ, the son of God, gave his life in love and humility, leaving His glory aside. By His death on Good Friday, Jesus taught us that there are benefits in making sacrifice for the good of others.

“Such suffering or sacrifice, like that which a mother makes for her children, or a friend for another, is pleasing to God.

“Good Friday invites us to repent, do away with sin, but do something for the good of others and thus, enjoy God’s favour,” he said.

Badejo remarked that Easter Sunday is the celebration of the victory of Jesus Christ, which reminds all that the victory of good over evil is inevitable.

He said that, just as all conspiracies against Christ’s resurrection could not stand, similarly, all the evil happening in the world cannot stop the celebration of Easter as planned by God.

“That is why Christians rejoice at Easter. Alleluia! Easter Sunday answers all the questions of Good Friday. Why should good people suffer sometimes?

“Well, because God always has a superior reason and for allowing such to happen.

“If Jesus had not died, salvation would never have come. To all who suffer, I say: “Be comforted: with Jesus, Good Friday is not the last word, Easter Sunday victory is.

“I urge all Nigerians to emulate Jesus’ way of love and sacrifice for others,” Badejo said. (NAN)

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