By Jeph Ajobaju, Chief Copy Editor
Nigeria’s treasury is expected to generate N7 billion tax revenue yearly from five million new solar power connections in off-grid communities, besides $10 million in import substitution each year.
Rural Electrification Ageency (REA) Managing Director, Ahmad Salihijo, who disclosed the anticipated sums, enthused that the scheme would expand energy access to 25 million individuals.
Households will pay about N4,000 monthly over a three-year period to benefit from the government’s Solar Home Systems which commenced this month, per reporting by Nairametrics.
Solar Homes Systems, also called Solar Power Naija, being implemented by the REA aims to boost efforts to fix power supply challenge with priority given to rural areas and urban settlements that are underserved or cut off from national grid.
There is an option of outright ownership of solar panels at a cost ranging from N1, 500 per week to N4,000 per month for three years, which will enable as many as 25 million Nigerians to own personal solar systems in their homes.
As stated in the Economic Sustainability Plan, the five million connections is a private sector-led electricity access acceleration scheme facilitated by a low-cost loan facility from the Central Bank of Nigeria (CBN) and implemented by REA.
The programme will include the assembly or manufacturing of components of off-grid solutions to facilitate the growth of the local manufacturing industry.
In view of the scale of materials required, solar equipment manufacturers/assemblers will be incentivised to set up facilities in Nigeria, thereby creating jobs.
Installation, servicing, and payment collections are expected to provide thousands of other jobs. In all, at least 250,000 jobs are expected to be created.
Private sector involvement
The Punch reported Salihijo as saying that the solar power system would also help address the challenge of access to affordable finance through the CBN loan facility.
His words: “Private companies will be supported to employ more Nigerians to be able to provide services in the area of manufacturing, distribution, installation and other project management and after-sales services.
“The programme also supports manufacturers and assemblers of solar technology to set up production facilities in Nigeria, in order to support the off-grid energy sector with about 250,000 new jobs.”
Salihijo said companies involved in the assembly/manufacturing of components of off-grid solar solutions must be 70 per cent Nigerian owned as the programme is meant to facilitate local productivity.
“As the implementing agency of this programme under the able supervision of the Federal Ministry of Power, we are delighted that this programme has come to fruition.”
He encouraged other stakeholders from government agencies, donor partners, and private sector operators to support the REA in achieving the huge task of delivering five million power connections to 25 million Nigerians.
