Nigeria deploys $750m from World Bank loan to fix national grid collapses, boost economic activities
Nigeria has ring-fenced $750 million from a World Bank loan to fix the national grid that has collapsed 12 times this year alone and also fund renewable power in an energy mix to achieve stable supply and lift economic activities.
The plan focuses on boosting power supply to key subsectors such as education, health, agriculture, rural communities, and transportation.
With about 80 million Nigerians estimated to be without electricity supply, the government said the e-HEART project aims to deploy mini-grids to solve the energy access problems in rural communities, thereby creating sustainable economies and reducing rural-urban drift in Nigeria.
The government, as part of this strategy, has also earmarked another $700 million from the African Development Bank, AfDB, to fund the “desert to power” project which seeks to harness the abundant sunlight in the northern region of the country to generate renewable energy for communities.
Speaking at a stakeholder’s engagement workshop organized by the Rural Electrification Agency, REA, the Minister of Power, Adebayo Adelabu, said off-grid electricity supply had become a key component of the government’s plan to bridge the electricity supply gap.
Adelabu, who was represented by the Director, Renewable and Rural Power Access, Sunday Owolabi, expressed optimism that the various projects in the renewable energy sector would impact at least 13 million Nigerians.
“At the recent Federal Executive Council, FEC, His Excellency approved N161 million worth of contracts for the upgrade of power substations under the Presidential Power Initiative, PPI. I am happy to assure you that we are on course to deliver an additional 150MW to the grid while impacting 14 existing substations and establishing 21 new ones.
“The team at the Rural Electrification Agency, REA, have also been hard at work as we approach the kick-off of the Distributed Access through Renewable Energy Scale-up, DARES, programme, which I believe many of you must have heard about. Our partners at the World Bank have committed $750 million to this groundbreaking project and we are certain that over 13 million Nigerians will be impacted through the DARES (Distributed Access through Renewable Energy Scale-up)”.
Also speaking, the Managing Director/CEO, REA, Abba Aliyu, noted that the Rural Electrification Fund has deployed 124 mini-grids and 25,580 solar home systems with a combined capacity of 16.6MW.
He disclosed that 195,198 connections had been made with 183 communities and 12 markets among the beneficiaries.
Aliyu said the project would provide uninterrupted power supply to 3,700 primary healthcare centres, 25 schools per state and FCT, 25 communities in each state and FCT, and solar powered tricycles and charging stations across the 36 states and the Federal Capital Territory, FCT.
“I want to state that there was never a time in this country that the renewable energy sector has received the level of attention and support that we are getting from this government. The first act the President signed when he assumed office is the Electricity Act and this is the reason why we are here.
‘’It is the basis why all the commissioners from the states are here and it is the reason why we have much more opportunities for states and local governments to get involved in the electricity sector,” he stated.
He urged the sub-national governments and private sector to key into the several programmes of the federal government to ensure the provision of sustainable and quality power supply to Nigerians.
– Vanguard
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