- Over 200,000 solar home systems on course
BY EDMOND ODOK – The Federal Government’s Economic Sustainability Plan (ESP) is set to birth the ‘Solar Power Naija’ with an initial target of over 200,000 Solar Home Systems roll-out in a partnership between the Nigeria Sovereign Investment Authority (NSIA) and the Rural Electrification Agency (REA).
Under the direct supervision of Vice President Yemi Osinbajo, the programme would have the NSIA creating an initial revolving fund of N10 billion for qualified developers to distribute and manufacture Solar Home Systems.
A statement announcing the partnership explained that the earmarked fund will be accessible by Nigerian Electrification Program qualified developers under the existing REA and World Bank scheme that guides technical qualification and provides grants for developers to invest and participate in Off-Grid Electrification projects.
According to the statement, REA, under the Ministry of Power, is expected to provide technical and advisory support for the NSIA’s investment targeted at catalysing 200,000 Off-Grid connections in the first instance with a goal of reaching over 500,000 systems as the Fund revolves and expands through to the year 2023.
Also, estimated to create about 20,000 jobs across manufacturing, assembly, installation, and retail sectors over the period, the partnership will assist Nigeria in meeting its ESP target of increasing electrification and creating five (5) million solar connections over the next few years.
Furthermore, it is expected that at completion, the investment would demonstrate that locally, the Solar Off-Grid space is an investable segment of the power market.
In his remarks, the Managing Director and Chief Executive Officer of REA, Ahmad Salihijo, who described the partnership with NSIA as exciting in so many ways, said; “We believe this investment commitment as approved by the NSIA Board is a harbinger for increased investments in the Off-Grid renewable space that will help Nigeria achieve its goals under COP 26 and eliminate the Electrification Gap in the country”.
On his part, Managing Director and Chief Executive Officer of NSIA, Mr. Uche Orji, said the Authority “continues to prioritize climate-smart infrastructure to create access to affordable power to Nigeria’s underserved communities, particularly in the rural areas.”
He further stated that; “NSIA recognizes the latent potential in these communities and believes that access to power is fundamentally important to enhancing the capacity of SMEs in these communities to support the economic growth of the country and employment creation”.
As an investment institution of the Federal Government, NSIA was set up to manage funds in excess of budgeted hydrocarbon revenues. Its mission is to play a leading role in driving sustained economic development for the benefit of all Nigerians through building a savings base for the Nigerian people, enhancing the development of Nigeria’s infrastructure, and providing stabilization support in times of economic stress.
In addition, NSIA is “empowered to receive, manage, and invest funds in a diversified portfolio of medium and long-term assets on behalf of all three tiers of government, including the Federal Capital Territory (FCT), in preparation for the eventual depletion of Nigeria’s hydrocarbon resources.”
For REA, tasked with the electrification of rural and unserved communities, its mission is to provide access to reliable electric power supply for rural dwellers irrespective of where they live and what they do, in a way that would allow for a reasonable return on investment through an appropriate tariff that is economically responsive and supportive of the average rural customer.
