The Federal Government of Nigeria has given its nod to a $750 million funding initiative from the World Bank.
This substantial investment is earmarked for the construction of 1,200 mini-grids across various rural communities in the country.
The announcement came during the Alliance for Rural Electrification Energy Access Forum held in Lagos, where the Managing Director/Chief Executive Officer of the Rural Electrification Agency (REA), Abba Aliyu, addressed the media.
Aliyu revealed that President Bola Tinubu had approved the allocation of the fund for the Distributed Access through Renewable Energy Scale-up (DARES) project.
This ambitious initiative is designed to provide energy access to millions of Nigerians residing in remote rural areas currently devoid of electricity.
Aliyu emphasized the urgency of addressing Nigeria’s electricity gap, noting that the country has the highest such gap globally.
With approximately 85 million Nigerians lacking access to electricity, the DARES project aims to provide energy to about 19 million individuals in rural communities.
Under the project, the $750 million funding will serve as a capital subsidy to incentivize private sector participation in electrifying rural areas.
Aliyu outlined the project’s multifaceted approach, which includes deploying isolated mini-grids to provide electricity to three million Nigerians, establishing interconnected mini-grids to serve 1.5 million individuals, and implementing solar system mesh-grids to benefit around 15.5 million Nigerians.
Also, the funding will be utilized to support over 40,000 farmers by providing them with productive use equipment to enhance productivity.
The significance of this funding cannot be overstated, particularly against the backdrop of Nigeria’s ongoing struggle with energy poverty.
The Federal Government, through the REA, is spearheading efforts to bridge the electricity gap and improve the livelihoods of millions of Nigerians living in underserved rural areas.
In a statement, the Minister of Power, Adebayo Adelabu, highlighted the critical importance of bringing energy access to every corner of Nigeria.
He emphasized the necessity of leveraging off-grid solutions, such as mini-grids, to accelerate energy access, particularly in rural areas where traditional grid expansion may not be feasible.
Adelabu underscored the need for commercially viable investments in mini-grids to ensure sustainable electrification efforts.
He stressed the importance of transitioning from grant funding to commercially viable models, signaling the government’s commitment to achieving universal electricity access while fostering economic sustainability.
The $750 million World Bank funding represents a significant milestone in Nigeria’s journey towards achieving universal energy access. With concerted efforts from both the public and private sectors, coupled with strategic investments like the DARES project, Nigeria is poised to make significant strides in closing its electricity gap and improving the lives of millions of its citizens.