The Federal Government of Nigeria has given the green light to a $750m World Bank funding for the establishment of 1,200 mini-grids in rural areas throughout the nation.
During the Alliance for Rural Electrification Energy Access Forum in Lagos, Abba Aliyu, the Managing Director/Chief Executive Officer of the Rural Electrification Agency, made the announcement. This funding is part of the Distributed Access through Renewable Energy Scale-up project, which aims to provide energy access to Nigerians residing in rural communities. The scheme is set to offer electricity to approximately 19 million out of the 85 million Nigerians lacking access to energy.
Aliyu highlighted the Federal Government’s efforts to narrow the energy gap in Nigeria. This effort aimed to electrify 23% of the total unelectrified population. The initiative involves granting electricity access to three million Nigerians through isolated mini-grids, 1.5 million Nigerians via interconnected mini-grids. In addition, another 15.5 million Nigerians will gain access through solar system mesh-grids. Additionally, the government plans to leverage the funding to enable over 40,000 farmers to utilize equipment that enhances their productivity.
Currently, the Federal Government is executing a phase of the Nigeria Electrification Project. The World Bank and African Development Bank have financed this project with $550m.
Adebayo Adelabu, the Minister of Power, stressed the significance of off-grid technology in expediting energy access in rural regions. Also, he emphasized that the Federal Government achieving this goal through the national grid alone would be unattainable. Off-grid technology plays an essential role in accelerating energy access. Adelabu recognized the necessity of transitioning from grant funding to commercially viable mini-grid investments.
In conclusion, this transition is important to ensure universal electricity access in Nigeria. As a result, the overall economy will benefit from this.
