W’Bank, Others Unlikely To Fund Nigeria’s Coal Powered Projects – FBNQ

W’Bank, Others Unlikely To Fund Nigeria’s Coal Powered Projects – FBNQ

The development of coal deposits for power generation will not qualify for funding from the World Bank and many multilateral financial institutions despite the abundance of the mineral resources in Nigeria, The Punch reports.

Analysts on Monday stated that the Federal Government had plans to generate about 30% of Nigeria’s electricity from coal, but described the initiative as “unclean power.” In April this year, the Minister of Mines and Steel Development, Kayode Fayemi, announced that his ministry was collaborating with the Federal Ministry of Power, Works and Housing on several coal-to-power projects.

But in their report on Monday, analysts at FBNQuest Research, a research arm of First Bank Plc, stated that despite the abundance of coal in some states in Nigeria, international financial organisations would not fund the development of the deposits. On its website, the mines and steel ministry observed that nearly three billion tonnes of indicated reserves of coal were in 17 identified coal fields and over 600 million tonnes of proven reserves in Enugu State alone.

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