• Friday, December 27, 2024
businessday logo

BusinessDay

Nigeria unveils solar program, N140bn to be provided for developers

Nigeria unveils solar program, N140bn to be provided for developers

Yemi Osibajo, leading the unveiling of the solar programme

Not less than 25 million Nigerians, whose communities are not linked to the national electricity grid are soon to have access to cheap and environmentally friendly renewable power.

This was announced by an ambitious programme by the Federal government to supply electricity to 25 million Nigerians through Solar Home System (SMS).

The initiative tagged ‘Solar Power Naija’ is a component of the Economic Sustainability Plan (ESP) of the federal government aimed at achieving the rollout of 5 million new solar-based connections in communities that are not grid-connected.

The Jangefe community in Roni LGA of Jigawa, which has a population of 5,000 will get 1000 solar home systems connections, according to a tweet o by Laolu Akande, senior special assistant to the VP on media and publicity.

Read Also: Nigerian Breweries invests N36bn into Ijebu Ode plant, solar power, others

NAN reports that the community will pay monthly energy payments until the systems are fully paid for. At this point, there will be a transfer of ownership to each consumer in the community.

The event marks the commencement of 100,000 connections through a commercial partnership between A-Solar, a local developer, the Niger Delta Power Holding Company (NDPHC), and Sterling Bank.

The ministry of power through the Rural Electrification Agency (REA), is the implementing public agency for the Solar Power Naija programme.

The program provides N140 billion in concessionary financing from the Central Bank of Nigeria and commercial banks for off-grid developers.

The developers will then roll out mini-grids and solar home systems that will cost from N3,000 per month (and up, depending on system type) to provide electricity to locations all across the country.

Through a World Bank and REA programme called the Nigerian Electrification Programme (NEP), each connection under the Solar Power Naija programme would receive a 20 percent rebate for the developer.

This would in turn allow the rates charged to consumers to be reduced by the same amount.

The Jangefe community in Jigawa will be the first location covered by the A-Solar company, which has leveraged on Roni LGA and Kazaure Emirate Council to do mass sensitisation for an understanding of the usage of the system and payment mechanisms.

Through a World Bank and REA programme called the Nigerian Electrification Programme (NEP), each connection under the Solar Power Naija programme would receive a 20% rebate for the developer.

It will, therefore, allow the rates charged to consumers to be reduced by the same amount.

What this means

The Solar Power Naija Project which is a component of the Economic Sustainability Plan will ensure that Nigerians who are not on the grid, that is those without electricity, will have the opportunity to enjoy that for the first time.

The Solar Power Naija is also expected to create 250,000 new jobs in the energy sector in addition to the solar equipment manufacturers who will have the incentive to set up facilities in Nigeria thereby offering more job opportunities to Nigerians.

Dipo Oladehinde is a skilled energy analyst with experience across Nigeria's energy sector alongside relevant know-how about Nigeria’s macro economy. He provides a blend of market intelligence, financial analysis, industry insight, micro and macro-level analysis of a wide range of local and international issues as well as informed technical rudiments for policy-making and private directions.

Join BusinessDay whatsapp Channel, to stay up to date

Open In Whatsapp