Tinubu okays $750m for rural electrification

The Federal Government has approved a $750m World Bank funding for the construction of 1,200 mini-grids in rural communities across Nigeria.

The Managing Director/Chief Executive Officer of the Rural Electrification Agency, Abba Aliyu, disclosed this while addressing newsmen at the Alliance for Rural Electrification Energy Access Forum held in Lagos.

According to Aliyu, President Bola Tinubu approved the fund for the Distributed Access through Renewable Energy Scale-up project, which aimed at providing energy access to Nigerians in rural communities.

Aliyu noted that about 19 million of the 85 million Nigerians without access to energy would be provided electricity under the scheme.

While noting that Nigeria has the highest electricity gap in the world, Aliyu stated that the Federal Government was doing a lot to bridge the gap.

The REA boss explained that the fund would be used as a capital subsidy to incentivise the private sector to electrify 23 per cent of the total unelectrified Nigerians,

Aliyu said, “The Federal Government, under the leadership of President Bola Tinubu approved the Biggest public sector-funded off-grid project across the entire world. It is a $750m project where REA will use that funding as a capital subsidy to incentivise the private sector to electrify 23 per cent of the total unelectrified Nigerians, and we are very clear about how we want to achieve that.

“We want to provide three million Nigerians with electricity access using isolated mini-grids; 1.5 million Nigerians with electricity through interconnected mini-grids and and also about 15.5 million Nigerians with solar system mesh-grids.

“We also intend to use that funding to capitalise private sector funding to provide over 40,000 farmers with productive use of equipment to enhance their productivity.”

He said the Federal Government is currently implementing one phase of the Nigeria Electrification Project, a $550m project funded by the World Bank and the African Development Bank.

The Minister of Power, Adebayo Adelabu, said one of the critical mandates of the power ministry is how to bring energy access to everyone in Nigeria.

Speaking on the $750m World Bank funding, Adelabu saw the need to shift from grant funding to commercially viable mini-grid investments.

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