In its commitment to provide energy solutions to rural communities in Nigeria, the Bank of Industry (BOI) and the United Nations Development Programme (UNDP) have signed a partnership agreement to provide more communities across Nigeria with solar power worth $2 million.
This partnership represents the second round of solar power provision for rural communities across the country between the BOI, which is the implementing agency on behalf of the federal government, and the UNDP.
At the signing ceremony, the acting Managing Director of the BOI, Mr Waheed Olagunju, said the six communities in which solar power projects had been carried out are enjoying stable power supply.
“This commenced in 2015 with a pilot phase in which the first set of low-cost, off-grid solar electrification projects were deployed in one community in each of the six geopolitical zones, in partnership with GVE Projects Limited and Arnergy Solar Limited.
“The pilot project involved the provision of long-term financing for the installation of micro-grid and stand-alone solar solutions in Bisanti community, Katcha LGA in Niger State, Idi-Ita/Onibambu community, Ife North LGA in Osun State, Kolwa community, Kaltungo LGA in Gombe State, Onono community, Anambra West LGA in Anambra State, Obayantor 1 community in Edo State and Charwa/Chakun communities, Makarfi LGA in Kaduna State. These projects were commissioned in record time between October 6, 2015 and May 24, 2016.
“The blend of BoI’s contribution in the sum of $1.4 million as debt
financing for the projects, with UNDP’s grant contribution of $600,000 will provide the much-needed stimulus to scale up the projects in view of the attendant reduction in the cost of deployment and enhancement of its overall viability,” he said.
He explained further that BoI’s contribution and the UNDP grant would be deployed to provide solar energy solution in states where both BoI and UNDP had existing collaboration.
Olagunju said the pilot project scheme in Gombe, Niger, Osun, Anambra, Edo and Kaduna states, was aimed at giving rural communities the opportunity to take control of their energy generation and also pay for only the energy used.
He disclosed that plans were underway to replicate the project in other off-grid communities in Edo State, in collaboration with the state government as well as other parts of the country, working with the various state governments.
Olagunju stated that for Nigeria to meet up with its energy needs, it must diversify into the use of alternative sources as the country had some of the world’s most abundant and least exploited renewable energy sources, especially solar power.
He maintained that solar power could be utilised to provide the much-needed electricity for the nation’s rural communities, rather than waiting in vain for the national grid to get to these areas.
He, however, said the Development Finance Institution’s (DFIs) medium term vision was to have about 100,000 homes installed with stand-alone solar home systems, pointing out that this move was essentially a programme aimed at poverty alleviation, reduction in rural-urban migration to foster rural economic development.
“We are all aware that power remains a major obstacle to growth in Nigeria, as inadequate and unreliable electricity undermines investment opportunity, economic growth, social and infrastructure developments,” he said.