*As REA targets N7bn from investors
Nigeria needs a $3.5 billion investment annually to generate 40,000 megawatts (MW) of electricity by 2030.
This was even as the Rural Electrification Agency (REA) was targeting additional N7 billion revenue from its first investors’ matchmaking for Solar Naija Programme (SNP).
Speaking at the investor match-making event, which the REA organised in Abuja, the Minister of Power, Engr. Abubakar Aliyu, disclosed that it would cost Nigeria an annual investment of $3.5 billion to attain 40,000MW by 2030.
With 23 power generating plants connected to the national grid, Nigeria has the capacity to generate 11,165.4 MW of electricity.
As at last January, Nigeria’s available power generation capacity in the First Quarter of 2022, according to a Nigerian Electricity Regulatory Commission (NERC) First Quarter 2022 Report published on January 6, 2023, decreased to 4,712.34MW from 5,465.72MW in the Fourth Quarter of 2021.
It stated that in the First Quarter of 2022, the average hourly generation of all available units decreased by 190.58MWh/h (-4.44 per cent) from 4,294.02MWh/h in 2021/Q4 to 4,103.11MWh/h.
The Commission attributed the decrease to incessant technical faults, gas constraints, as well as undulating load demand patterns that have continued to affect the amount of energy generated by power plants.
Represented by the Ministry’s Director of Investment, Mrs. Eyo Babalola, Aliyu noted the Ministry was the fulcrum of the actions with which the government is transforming the industry from a public to a private sector-driven one.
He said that, with the recent legislation that has empowered state governments to generate and distribute electricity, there are limitless investment opportunities in the sector.
The Managing Director of REA, Engr. Ahmad Salihijo Ahmad, informed the Rural Electrification Fund (REF) is undergoing some slight reforms to work with private investors for impact financing.
He explained the essence of the reform was to ensure there is a revolving fund that could suffice when there are non-viable areas.
Meanwhile, the REA is targeting additional N7 billion revenue from its first investors’ matchmaking for SNP.
The Programme aimed at providing the opportunity for potential investors to pitch their financial offerings to developers, clearly stating the selection criteria and key terms.
In a statement by the Agency on Thursday, the Agency hinted that the event would facilitate networking and matchmaking forum that brings together key investors and high-performing developers (pre-evaluated by the SPN team) in the power sector.
The event was organized in collaboration with the Power Africa Nigeria Power Sector Program (PA-NPSP, USAID).
The Solar Power Naija Programme was launched as part of the Economic Sustainability Plan (ESP) to achieve the roll out of 5 million new solar connections in off grid communities.
It stated that program is expected to generate an additional N7 billion increase in tax revenues per annum and $10 million in annual import substitution.
The objectives of the programme is to expand energy access to 25 million individuals (5 million new connections) through the provision of Solar Home Systems (SHS) or connection to a mini grid, Increase local content in the off grid solar value chain and facilitate the growth of the local manufacturing and assembly industry and Incentivize the creation of 250,000 new jobs in the energy sector.
Speaking during the event, Ahmad encouraged partnerships like these to boost energy access in communities.
“As the implementing agency for Nigeria’s off-grid strategy, the REA has been working to support private developers by creating an enabling environment to facilitate investments in various ways, including access to data, policy support, grants, capacity development, stakeholder management, and most importantly financing for Developers,” he said.
The Acting Deputy Missions Director, USAID Nigeria, Stephan Menard, in his remark, encouraged private developers to key into the project.
“I encourage the private developers to take advantage in accessing financing towards improving the lives of Nigerians by delivering sustainable energy access,” he said.
The Head, Solar Power Naija Programme, Barbara Izilien, looked forward to better days.
“We hope, with this approach, we will be able to build quick partnerships that would lead to new connections, and further count towards our target of electrifying a minimum of five million households, serving a minimum of 25 million Nigerians,” he said.
The Solar Power Naija Programme, implemented through the REA, is actively working on catalysing access to financing for developers in the off-grid sector to achieve the programme targets.
The event witnessed the signing of Memorandum of Understanding (MoU) between the REA and Chapel Hill Denham through the Solar Power Naija Programme.
The MoU is aimed to facilitate financing to developers for off grid electrification projects.
