The managing director for Nigeria’s Rural Electrification Agency (REA) has said the Private Sector is essential to achieving its goal of developing ten thousand mini-grid sites by 2023, Development Finance reports.
“It needs to be Private sector-driven access model for Nigeria,” said Damilola Ogunbiyi, managing director of REA. “The power sector in Nigeria should be driven by private funding, innovation and technology, which can achieve [energy] access much faster than the public sector.”
However, Ogunbiyi said the private sector cannot electrify the most remote communities in the country, especially hospitals and schools that are unlikely to attract private partners on market terms only.
The government of Nigeria is expected to work with the World Bank to devise limited subsidy structures, such as results-based financing, which would pay mini-grid developers for successful connections.
The state has also released clear licensing and standards along with a new mini-grid policy, which came out last year. Under the current leadership, REA has been given a broader mandate to deliver access not just to rural villages, but also to small and medium-sized enterprises (SMEs) in urban areas.
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