Nigeria set to encourage improved electricity supply with $200 million support fund

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The Nigerian government is set to ensure about 500,000 more people are given access to electricity, as it plans to spend about $200 million on providing electricity for about 105,000 households.

The initiative, which is a continuation of the government’s rural electrification plans, was approved by the Federal Executive Council (FEC), with financial support worth $200 million provided by two multilateral institutions for the project.

The Minister of Finance, Zainab Ahmed, who highlighted the latest development in the country’s power sector in Abuja, explained that $150 million would come from the African Development Bank (AfDB). She said the amount will be spent specifically on rural electrification projects while another $50 million would come from Africa Grow Together Fund for other electrification projects.

Ahmed noted that with the funds, the maximum power that would be generated would be 76.5 megawatts (MW) installed generating capacity, mostly from solar.

According to the Finance Minister, “Council approved three memos for ministry of finance. First, it approved a $150 million loan facility from AfDB and $50 million loan from African Grow Together Fund to finance the Nigerian electrification project. The project is a nationwide initiative to be implemented by the Rural Electrification Agency”.

She revealed that “the project has four components: First is solar hybrid mini-grid for rural economic development; the second is productive appliances equipment for off-grid communities, and the third is energising education while the fourth component is institutional capacity building”.

Ahmed also said that “the  impact of the project when fully implemented, about 500,000 people will be able to have access to electricity for about 105,000 households. The maximum power that will be generated will be 76.5 megawatts installed generating capacity”.

The Minister went on to reveal that “the second approval is the North Core Dorsal Regional Transmission Project. This is a project that is part of the pipeline for the West Africa Power Pool priority projects. The intention is for the creation of a regional power pool in the region of West Africa”.

She said “the pool project aims to connect Nigeria, Niger, Benin Republic, Togo, and Burkina Faso with a high voltage 330 kilowatts transmission line, to facilitate energy trade among participants”.

Speaking on the West Africa Power Pool priority projects, Ahmed said “the project is in the total sum of $640 million, out of which each of the four countries involved has a component. Nigeria has the smallest component in this pact, which is a total loan of $27.3 million IADE facility, a concessionary loan”.

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