The African Development Bank Group (AFDB) has allocated $150 million to the Nigerian Government in order to fund electrification projects in the country.
In an interview with our correspondent, AFDB’s Energy Sector Policy & Regulations Specialist, Dozie Okpalaobieri, said this was a sovereign loan to the Nigerian government for the Nigeria Electrification Project (NEP) and will be supported by an additional $50 million from the Africa Growing Together Fund.
According to him, the NEP comprises of four components which includes $70 million for the rollout of mini-grids in 250 sites across the country, $20 million to incentivize the provision of productive use appliances and equipment to rural businesses/households, $100 million for the FGN’s Energising Education project and $10 million for the technical assistance component of the project for REA and other stakeholders to support rural electrification scale-up activities.
He further explained that Africa has a high demand for power supply and with the sunlight resources in the region, the AfDB is fully supportive of the drive to increase electricity access through renewable energy as an alternative source of energy.
“If you drive around Lagos and Abuja, you will see a lot of buildings that have started installing solar panels as an alternative source of energy. It provides the necessary power needed, reduces the cost of electricity and at the same time gives time for the necessary expansion of the grid. And, it is environmental friendly”, he added.