Key Development and Finance Updates

Nigeria's Bank of Industry (BoI) and the United Nations Development Programme (UNDP) have signed a $2 million agreement to provide solarpowered electricity to off-grid rural communities across six states in Nigeria.

Under the agreement, BoI will contribute $1.4 million to the project, while the UNDP will provide the remaining $600,000 as part of the second phase of the BoI/UNDP Access to Renewable Energy Project.

“The blend of BoI's contribution in the sum of $1.4 million as debt financing for the projects, with UNDP's grant contribution of $600,000 will provide the much needed stimulus to scale up the projects in view of the attendant reduction in the cost of deployment and enhancement of its overall viability,” said Waheed Olagunju, BoI's Acting Managing Director.

In the pilot phase of the project – which commenced in 2015 – low-cost, off-grid solar installations were constructed and commissioned in one community in each of the six geo-political zones in Nigeria. The beneficiary communities of the pilot phase were: Bisanti, in Katcha Local Government Area of Niger State; Idi-Ita/Onibambu, in Ife North LGA of Osun State; Kolwa and Kaltungo LGA of Gombe State; Onono in Anambra West LGA of Anambra State; Obayantor 1 in Edo State; and Charwa/Chakun in Makarfi LGA of Kaduna State.

Under the second phase of the project, Olagunju said the BoI and UNDP financing will be used to provide solar installations for more communities in the existing beneficiary states: Niger, Osun, Edo, Anambra, Kaduna, and Gombe.