The Central Bank of Nigeria (CBN) has established a 500 million Solar Connection Intervention Facility for manufacturers.
In a press release on Monday, the apex bank said the facility has a N500 million limit for shortlisted home solar value chain players that include manufacturers and assemblers of solar components and off-grid energy retailers in the country.
The scheme, according to the Federal Government, is expected to generate an additional N7 billion increase in tax revenues per annum and expand energy across 25 million individuals, increase local content in the off-grid solar value chain and improve the local manufacturing industry while also creating more job opportunities.
The CBN stated that these manufacturers must exhibit a track record of skill that conforms with that of the Rural Electrification Agency (REA) and the Standards Organizations of Nigeria (SON).
It maintained that it is a 10 years maximum fund with a total cost of 70 percent and it shall not be used to finance the importation of fully assembled solar components and balance of the system.
The participants according to the CBN will have up to seven years tenor and a moratorium of up to two years, depending on the nature of the project.