The World Bank has provided a US $350m loan to Nigeria for the development of rural electrification projects in the country.
The loan was handed to the government and the bulk of it will go to the private sector; this is according to the Nigeria Country Director for World Bank Rachid Benmessaoud. He was speaking at the ongoing Action Learning Event in Abuja. The event was themed Up-scaling Mini Grids for Low-cost and Timely Access to Electricity.
The bank also said that about 80m people in Nigeria have no access to electricity. On the other hand, about 600m people in sub Saharan Africa do not have power supply in their various communities.
Also read:Nigeria targets 3,000MW Off-Grid electricity by 2020
Loan disbursement
Managing Director, REA, Mrs. Damilola Ogunbiyi, said US $100m out of the sum will go to mini grid development. She further added that they are currently trying to achieve 3,000 megawatts. This is with regards to the total quantum of electricity in target with the 10,000 mini grids.
Some sites could be 150 kilowatts, others 20KW. However, 10,000 (mini grids) is but a guide for the people. Ogunbiyi, also explained that World Bank’s Nigeria Electrification Project (NEP) will disburse the funds, which REA will implement after its approval in April 2018.
She said businesses in Nigeria spend up to US $112m annually to generate unstable and expensive electricity, but REA was working with the private sector to provide off grid power supply strategies for businesses in the country.
