FG Gets AfDB’s $200m for Off-grid Electricity

500,000 Nigerians, 105,000 rural homes to benefit from grant

The Rural Electricity Agency (REA) yesterday officially launched its $200 million Nigeria Electrification Project (NEP) which it said would be deployed in providing 500,000 Nigerians in 105,000 rural households with off-grid electricity commencing in the next five months.

The funds, which were sourced from the African Development Bank (AfDB), the agency said, would also enable eight universities and 20,000 micro, small and medium enterprises (MSMEs) to get access to reliable sources of energy as well as to stop the emission of 1.69 million tons of dangerous substances into the environment.

Managing Director of REA, Mr. Ahmad Salihijo, who stated this during the event in Abuja, said the project remains the largest single investment stream in Nigeria’s off-grid sector addressing the energy access challenge through mini-grids, the solar home systems and the Energising Education Programme (EEP) of the federal government.

The Chief Executive Office of the agency noted that four components are currently structured under the facility namely: Solar Hybrid Mini Grids under the minimum subsidy tender (MST), which will cost $70 million; Energy-Efficient Appliances for Productive Use, $20 million; phase three of the Energising Education Programme, $100 million, and technical assistance and capacity building which is $10 million.

“NEP-AfDB will contribute to more than 500,000 Nigerians in 105,000 households in off-grid or underserved communities, having access to electricity, an increase of 76.5 MW in installed power generation capacity (of which, 68 MW will be from solar generation alone)