BoI boosts rural community in Gombe State with 24KW solar power project

 The Bank of Industry (BoI) has commissioned a 24KW micro-grid solar solution for the benefit of thousands of rural dwellers in Kolwa, Kaltungo Local Government Area of Gombe State.

Prior to the solar power system installation, the more than 250 households in the largely agrarian village, like other remote communities across the country, had relied on self-power generation.

According to a press statement, the Kolwa electrification project is a 24KW capacity installation that covers a six-kilometre distribution network, and is also capable providing commercial ventures with electricity.

While the BoI/UNDP solar power pilot project is to be installed in six rural communities in the six geo-political zones, the Kolwa project makes it three of such so far installed.

Those projects previously installed are in Bisanti, in Katcha LGA of Niger, and in Onibambu, in Ife-North LGA in Osun.

The three awaiting commissioning are in Ogbekpen, Ikpoba in Okha LGA, Edo, Onono in Anambra West LGA, in Anambra and Carwa/Cakum, Makarfi LGA, in Kaduna State.

Speaking during the commissioning of the project in Kolwa, BoI’s Acting Managing Director, Mr. Waheed Olagunju, said the N44m rural
electrification was important to the country’s socio-economic life.

He said the project being financed by the bank in conjunction with the United Nations Development Programme would provide electricity for over 200 homes not connected to the national grid.

Olagunju said the rural electrification project was conceived by the bank not only to improve living standards of the rural dwellers, but also to boost economic activities in such areas.

“The installation of the 24KW solar power project in Kolwa will give electricity to the over 200 households in the area at the cheapest cost.

“Bank of Industry gave concessionary loan to the project developer, GVE Nigeria Limited, to achieve this feat,’’ he said.

Explaining the metering model to be employed, Olagunju said payment would be on a Pay-as-You-Go basis, with each household provided with a pre-paid meter.

“DFIs are policy-based institutions that are meant to intervene in areas where market-driven institutions will ordinarily not operate in.

“What we have done in Gombe State is a concessionary lending to GVE. We made available N44m to the firm to execute the project.

“We decided to adjust our terms and conditions to suit the nature of the project. We wanted to make it affordable,’’ he said.

The Acting Managing Director said BoI took into cognisance the fact that the community members’ cash flow would not be able to service the loan at 10 per cent.

He said it would also not be possible within the normal tenure of seven years.

“BoI normally allows for long-term lending. We decided to double the tenure to 15 per cent, while we also bring down the interest rate from 10 per cent to seven per cent.

“The import of this is that a market-driven commercial institution will not be able to lend at such rate because it will be below their cost.

“The firm employs from the local community as well as providing capacity for them. The system of metering is PAY-As-YOU-Go.

“Each of the 250 houses in the community will be given a meter and when you pay to the service provider, you will be given a code to load your meter.

“You can load your meter for as low as N100 to N200, which means you spend about N3,000 in a month to have uninterrupted
electricity as opposed to when you have to rely on kerosine lanterns which cost more and are unhygienic.”

The bank’s Acting Managing Director urged other partnering state governments to emulate Gombe state’s gesture by replicating the solar system in other parts of the states.

In his remarks, the governor of the state, Alhaji Ibrahim Dankwambo said the initiative would provide linkages for enterprise development in rural communities across the country.

He said he had directed the state’s top officials to liaise with the bank’s officials.

The governor said this was for the purpose of perfecting strategies on how the project could be replicated in the other nine LGAs of the state.

“While I congratulate the Kolwa community for being the pioneer beneficiaries of the pilot green energy solution programme in the state, I urge you to guard the project jealously and ensure its sustainability,’’ he said.