Federal Government don announce plan to bring in N1.1 billion from private sector to help improve power sector. The Managing Director of Rural Electrification Agency, Abba Aliyu, talk about this plan during the Nigeria Energy Summit wey hold in Lagos.
Aliyu say that apart from the $750 million wey President’s government already provide, dem expect say this money go help bring in N1.1 billion from private sector as part of co-financing. He explain say dem no dey finance the whole infrastructure cost, but dem dey provide grant and subsidy to encourage private sector funding.
He also talk about how dem dey work towards getting N100 billion local financing for developers, and say the process don already start. Aliyu emphasize the importance of exploring other sources of power generation like solar, small hydro, micro-hydro, biomass, and wind.
According to him, in the next 2 to 3 weeks, dem go release tender notice for micro mini-grid projects, including 336-kilowatt micro hydro plants. Dem also identify places like Katsina, Ondo, Ekiti, Cross River, Nassarawa, and Sokoto for small and micro hydro projects.
Aliyu reveal that 1.5 million Nigerians now get electricity through interconnected mini-grids, while 3 million others get electricity for the first time through isolated mini-grids. About 12 million people also benefit from mesh grid, stand-alone system, and solar home system.
The REA boss stress the need for private sectors to improve their financial viability to ensure the sustainability of these projects. He say that the commercial viability of the players is crucial for the success of any infrastructure financing.
