EXECUTIVE SUMMARY

Nigeria Electricity Project

 Federal Government Economic Recovery and Growth Plan

Given the critical role of electricity in the development of Nigeria, the Federal Government Economic Recovery and Growth Plan 2017 – 2020 (“ERGP”) has prioritized enhancing the existing on-grid installed capacity by encouraging small-scale renewable energy projects and building more power generation capacity to increase electricity access throughout the country. The Nigeria Electrification Project (NEP) is one of such projects.

 Nigeria Electrification Project

Nigeria Electrification Project (NEP) is a Federal Government initiative that is private sector driven and seeks to provide electricity access to households, micro, small and medium enterprises in off-grid communities across the country through renewable power sources. NEP is being implemented by the Rural Electrification Agency (REA) in collaboration with the World Bank and aims to be the largest off-grid electrification project across 250 communities in 4 states (Niger, Ogun, Sokoto and Cross River).

Nigeria Electrification Project Objectives

The objectives of the Nigeria Electrification Project are to:

  • Increase electricity access to households and micro small and medium enterprises (MSMEs).
  • Provide clean, safe, reliable and affordable electricity through renewable power sources to unserved and underserved rural communities.
  • Develop a data driven off-grid model for Nigeria that will become an exemplar for Sub-Saharan Africa.
  • Provide reliable power supply for 250,000 (MSMEs) and 1 million households.

The NEP is broken up into four main components listed below:

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Solar Hybrid Mini-Grid

Solar Hybrid Mini Grids:

This component entails the provision of subsidies and/or performance-based grants for mini-grid developers to electrify unserved and underserved areas that have high economic growth potential, aiming to serve households, local enterprises and public institutions. This component will i) provide electricity to communities that are unconnected to the national electricity grid; ii) increase business productivity by replacing generators, lanterns and candles with reliable electricity; iii) improve community security through street lighting and; iv) provide clean, safe and affordable electricity to rural dwellers.

Standalone Solar Systems (SHS)

Standalone Solar Systems (SHS):

Market-based incentives and technical assistance will be provided to standalone solar system providers to install solar home systems to help millions of underserved Nigerian households and enterprises. With this, Nigerians will access clean, safe and reliable energy services from private companies at a lower cost.

Energizing Education Programme (EEP)

Energizing Education Programme (EEP):

The overall objective of this component is to provide reliable, affordable and sustainable power to universities and associated teaching hospitals. This program’s scope is 37 federal universities and 7 associated university teaching hospitals across the country, serving approximately 120,000 people. These learning institutions will be powered by electricity generation systems of 1 MW to 11 MW that can operate either isolated from the grid or connected to the grid.

Technical Assistance

Technical Assistance: 

The provision of technical assistance will support project implementation and broad capacity building in the Federal Ministry of Power, Works and Housing and the Rural Electrification Agency. It will also finance project implementation as well as help build a framework for rural electrification.