The African Development Bank (AfDB) and the Africa Growing Together Fund (AGTF) are financing $200m to provide sustainable energy solutions for the underserved communities in Nigeria.
In order to address this, the bank along with the Nigerian government has launched the National Electrification Project (NEP) in the country.
The NEP project will direct private sector investments into the mini-grid and off-grid solutions.
Nigeria’s power minister Goddy Jedy Agba said: “Imagine the impact a project like the NEP will have when it is replicated across rural communities in the country.”
NEP will be implemented by Nigeria’s Rural Electrification Agency.
AfDB said that NEP is in line with its New Deal on Energy for Africa, the High 5 priorities and the Climate Change Action Plan.
NEP is also consistent with the Federal Government of Nigeria’s Rural Electrification Strategy and Implementation Plan (RESIP) and the Power Sector Recovery Programme.
The financing will help eliminate risk and increase private sector investment in the off-grid sector.
AfDB power, energy, climate change and green growth acting vice-president Wale Shonibare said: “Over 500,000 people will have access to approximately 76.5MW of increased installed power of which 68MW will be solar generated.”
Additionally, the project is expected to contribute to the universal energy access target by 2030.