The Nigeria Sovereign Investment Authority (NSIA) has disclosed plans to raise about N10billion for qualified developers to manufacture and distribute solar home systems, according to the Rural Electrification Agency (REA).
It said the investment is coming on the heels of its partnership with the agency.
It explained the investment by NSIA is targeted at catalyzing 200,000 off-grid connections in the first instance with a goal of reaching over 500,000 systems as the Fund revolves and is expanded through to 2023.
“The programme is estimated to also create up to 20,000 jobs across manufacturing, assembly, installation, and retail over the period,” a statement from REA read in part.
In addition, it said the partnership will help Nigeria meet its ESP target of increasing electrification.
“This is a step towards creating 5 million solar connections over the next few years. At completion, it is expected that this investment will demonstrate locally that the Solar Off-Grid space is an investable segment of the power market,” it added.
The statement also quoted the MD/CEO of the REA, Ahmad Salihijo, as saying: “This investment commitment as approved by the NSIA Board is a harbinger for increased investments in the Off-Grid renewable space that will help Nigeria achieve its goals under COP 26 and eliminate the Electrification Gap in the country.”
The MD/CEO of the NSIA, While Mr. Uche Orji, noted that: “NSIA continues to prioritize climate-smart infrastructure to create access to affordable power to Nigeria’s underserved communities, particularly in the rural areas. NSIA recognizes the latent potential in these communities and believes that access to power is fundamentally important to enhancing the capacity of SMEs in these communities to support the economic growth of the country and employment creation.”
The Solar Power Naija Programme is being launched under the Federal government’s Economic Sustainability Plan (“ESP”) and supervised directly by Vice President Yemi Osinbajo.