Abuja  - The European Commission will spend 580 million euros (814 million dollars) on Nigeria's power sector in the next five years, European Union Commissioner for Energy Andris Piebalgs, said in Abuja on Wednesday.

Piebalgs said the EU was committing to the projects because 20 per cent of the oil and 80 per cent of the gas produced in Nigeria goes to European countries.

"Energy has become the key issue for Nigeria's development," he said.

Piebalgs said most developed countries were gradually moving away from expensive energy sources to bio-fuel, noting that Africa has huge potential for bio-fuel production and usage. (dpa)