The World Bank has informed the country that it will, however, get an initial five-year grace period for the repayment of the loan approved in June 2017, which will be disbursed through the International Development Association (IDA) credit window. ).

According to the loan fact sheet, the NEP will be managed by the Rural Electrification Agency (REA) and will leverage private sector investment in solar mini-grids and stand-alone solar systems to provide electricity to approximately 2 .5 million people and 70,000 MSMEs.

It will also fund the provision of reliable electricity to seven universities and two teaching hospitals under the Energizing Education Program (EEP).

“The program will help increase access of underserved households, public educational institutions and micro, small and medium-sized enterprises to electricity services,” the fact sheet states in its description.

The different phases of the project

The project has four components: the first being solar hybrid mini-grids for rural economic development which will be implemented under a market-based and private approach for the construction, operation and maintenance of mini -economically viable networks.

And will be supported by grants reducing initial capital expenditure. It consists of a tender for a minimum subsidy for mini-grids and a performance-based subsidy program.

The second component of the NEP, would be stand-alone solar systems for homes and MSMEs with the intention of significantly increasing the market for stand-alone solar systems in Nigeria to provide electricity access to over one million households. Nigerians and MSMEs at a lower cost than their current means of service; such as small diesel generators.

It consists of market-scaling grants and performance-based grants,” the fact sheet adds.

The third component of the NEP, the goal of boosting education will provide reliable, affordable and sustainable power to public universities and associated teaching hospitals.

While the fourth will consist of technical assistance intended to create a framework conducive to rural electrification, support the implementation of the project as well as capacity building within APER. Other structures under the State are also in the device.

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