(Ecofin Agency) - The Federal Government of Nigeria has decided to team up with the African Development Bank (AfDB) to fund coal projects across the country. This was disclosed by the Minister of Mines and Steel Development, Kayode Fayemi (photo), during a meeting in Enugu State with stakeholders of the mining sector.

According to Fayemi, the funds mobilized through the cooperation with AfDB will help exploit coal reserves in the country in order to make coal-fueled power plants account for about 30% of the country’s energy mix. “We have an existential need for power in this country and we have to do something about it and we can get power from coal, which we have in abundance,” the minister said.

In this regards, he added that the AfDB funding will be provided to investors ready to set up coal power plants able to generate up to 500 MW and those interested in establishing modular plants also.

It should be recalled that recently, the World Bank approved a $150 million loan for the mining sector. This facility, however, does not cover coal projects. The arrangement with AfDB is therefore quite opportune as it aligns with the ministry of mines’ goal to revive the sector and aims to boost the nation’s power supply amid severe electricity crisis.