The Rural Electrification Agency (REA) has signed grant agreements with seven renewable energy investors under the World Bank’s $350 million (N126.5 billion) funded Nigeria Electrification Project (NEP). The grant pacts are the Output Based Fund (OBF) for the sale of Solar Home Systems (SHS) to homes and businesses across Nigeria, and the Performance Based Grant (PBG) to deploy mini-grids to unserved and underserved communities
In a statement, REA Managing Director Mrs. Damilola Ogunbiyi, lauded the World Bank and the African Development Bank (AfDB) for the support to improve electricity access through the provision of grant funding and technical assistance.
“REA, in collaboration with the Federal Government of Nigeria, has secured funds from the World Bank ($350m) and AfDB ($200m – N72.3bn). These funds will go a long way in helping us connect communities, schools and homes to constant electricity,” she said.
The agency said it first signed off six firms in a thorough procurement process to deliver SHS to 1 million households within five years. REA then signed off a firm to deploy mini-grid project in Rokota community of Niger State.
The Mini Grids Component Head, Lolade Abiola, leads the project to provide reliable and affordable electricity to 300,000 homes and 30,000 local businesses with mini grids. “I can confidently state that renewable energy is the next big thing for the sector,” she said after the grant signing