Sanusi Ohiare, executive director, Rural Electrification Fund, REF/ Rural Electrification Agency, says 95 million Nigerians do not have access to electricity

By Anayo Ezugwu

Despite federal government investments in the power sector, more than 95 million Nigerians still live without electricity. Sanusi Ohiare, executive director, Rural Electrification Fund, REF/ Rural Electrification Agency, ERA, who gave the figure, said of those living with electricity, 55 percent are connected to the grid, while 45 percent are off-grid.

Ohiare, who spoke at the 16th edition of the seminar series on ‘Renewable Energy Potentials in Nigeria’ organised by the German Embassy in Nigeria on Wednesday, October 17, said the annual investment potential of the Nigerian off-grid market is estimated at more than $9.2 billion. He said with this potential, Nigeria is undoubtedly the largest off-grid market in Africa.

According to him, the greatest challenge facing the power sector is finance, adding that the federal government created the Rural Electrification Fund to support private sector investors who wants to invest in the off-grid market. He said the fund supports the investors through capital grants.

“Given the prevalent opportunities and challenges currently rocking the Nigerian energy sector, access to finance – either import or debt financing, or impact capital in the form of convertible loans and or equity remains a crucial factor for enhancing energy access across the country. From data available to us, Nigerians spent more than N15 billion annually to power their generators,” he said.

Ohiare said the agency is working to develop 10,000 mini-grids by 2023, which will provide electricity to 1.4 percent of Nigeria’s populations. According to him, the agency is equally working to provide reliable energy for more than 250,000 small and medium enterprises in the country.

“We are working to also provide uninterrupted power supply to federal universities and hospitals in Nigeria. We have a $350 million investments grant from the World Bank. And the fund would go into off-grid and mini-grid electricity. We have already allocated $150 million for mini-grids, $75 million for Solar Hands-on Systems, SHS, and $105 million for the universities and hospitals power systems.

“We are marketing and encouraging people to come into the renewable energy market in Nigeria. Whatever support the investors need, we are ready to work with them to improve power supply in the country. We are also calling on the industry players to take advantage of the Energising Economies Initiative, EEI, – an initiative of the federal government being implemented by the REA. EEI has a mandate to support rapid deployment of off-grid electricity solutions that will provide clean and consistent power to economic clusters in Nigeria.”

On his part, Dozie Okpalaobieri, energy sector policy and regulation specialist, African Development Bank, AfDB, said the bank is working to improve power system in Nigeria. He said the bank has deployed $410 million in the country for the electricity distribution companies, Discos, to expand their network.

According to Okpalaobieri, AfDB has created many facilities for energy inclusion not just in Nigeria but across Africa. He said the number of Africans living without electricity is a source of worry for the bank. “60 percent of sub-Saharan Africans live without electricity. 60 percent of the world population without access to electricity in urban areas also comes from sub-Saharan Africa. 58 percent of people in rural areas in Africa are living without electricity,” he said.

Okpalaobieri said there are many investment opportunities in the renewable energy sector in Nigeria. AfDB is developing credit enhancement tools that would enable investors’ access funds from the bank to invest in the sector in Nigeria.

In his opening remarks, Duke Benjamin, deputy delegate delegation of German Industry and Commerce in Nigeria, stated the urgent need for both capital and technical interventions to salvage the nation’s energy crisis. He said the German government is interested in developing renewable energy in Nigeria.

“German government recognises the potentials of renewable energy in Nigeria and is looking towards improving the business environment in the sector. We also encourage private investors to invest in the sector. We understand that the major problem in the sector is financing and that is why we are discussing the financial solutions in the sector,” he said.

– Oct. 19, 2018 @ 17:53 GMT |