FG Targets Improved Electricity Supply with Fresh $200m Support Fund

The federal government has said about 500,000 people without electricity in Nigeria would be able to have access to power in no distant time as it plans to spend about $200 million on providing electricity for about 105,000 households.

The initiative is in continuation of its rural electrification plans.

A weekly roundup of developments in the country’s power sector by the Ministry of Power, Works and Housing, quoted the Minister of Finance, Zainab Ahmed, to have stated this recently in Abuja, at the Federal Executive Council (FEC).

FEC had approved a financial support worth $200 million from two multilateral institutions for the project.

Ahmed, explained that$150 million would come from the African Development Bank (AfDB), to be spent specifically on rural electrification projects while another $50 million would come from Africa Grow Together Fund for other electrification projects.

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

She added that FEC approved the request to obtain the $150 million AfDB loan to finance the country’s rural electrification project, adding that other funds to execute power transmission projects in the country were also approved by FEC.

“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,” said Ahmed in the ministry’s report.

She noted: “The project aligns with the strategy of the federal government on electrification of rural communities. 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.

“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.

“Eight universities will benefit from this scheme and about 20,000 small, micro, medium enterprises across different communities in the nation,” the minister stated.

According to her: “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. 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.

“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. This is a loan that the four countries are taking together; the other three countries have concluded theirs. So, this is one of the final stages for Nigeria to conclude its process.”

As reported from thisdaylive

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