By Chibisi Ohakah, Abuja
Nigeria Sovereign Investment Authority (NSIA), the institution that manages Nigeria’s sovereign wealth fund, has allocated $24 million (N10billion) for the deployment of more than 200,000 solar home systems in Nigeria.
This project is coming under the “Solar power Naija” program between NSIA and Nigeria’s Rural Electrification Agency (REA), in line with Nigeria’s economic sustainability plan under the direct management of Nigeria’s Vice President Yemi Osinbajo.
The Rural Electrification Agency, which is a parasatatal under Nigeria’s ministry of power, is providing technical and advisory support to NSIA in the solar homes systems project.
Regarded as another step forward in renewable energy investment in Nigeria, under the arrangement, the NSIA will finance the local fabrication and installation of the solar home systems.
NSIA’s managing director, Mr. Uche Orji, said this investment is part of the “Solar power Naija” partnership between NSIA and Nigeria’s Rural Electrification Agency (REA), in line with the Buhari administration’s economic sustainability plan under the supervision of Nigerian Vice President Yemi Osinbajo.
The Solar Power Naija program was established to provide access to electricity to five million households, or 25 million Nigerians in rural areas and underserved urban communities nationwide. The program is also expected to create 20,000 manufacturing, assembly, and installation jobs to catalyze over 500,000 off-grid systems by 2023.
According to Uche Orji, NSIA’s managing director, his institution is prioritizing climate-smart infrastructure to create access to affordable electricity for Nigeria’s underserved communities, especially in rural areas where 66% of the rural population still lacks access to electricity according to Power Africa.
This year, South Korea plans to provide about $12.4 million in funding to the Nigerian federal government for the installation of solar mini-grids in rural areas. It has been reported that the project, led by energy providers S&D Powernics and ILJIN Electrics, will bring the benefits of electricity, including improved security and nighttime activity, to unserved populations.
In another development, after developing six mini-grids to facilitate rural electrification in Nasarawa State, energy provider Husk Power Systems will deliver its seventh mini-grid to Sabon Gida in Lafia City in 2022. The company plans to reach 500 solar hybrid mini-grids by 2026.
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