REA targets 1 million Nigerian households in 5 years, signs SHS deal with Baobabplus

Samuel Agbelusi

In furtherance of its commitment to attract more private sector players into the Federal Government’s Nigeria Electrification Project (NEP),  mini-grids and standalone solar home systems (SHS) framework, the Rural Electrification Agency(REA) has signed the Output Based Fund (OBF) grant agreement with BaobabPlus, as part of the plan to electrify 1 million Nigerian households in 5 years using renewable energy solutions.

This was confirmed in a statement by Anita Otubu, Head PMU-Nigeria Electrification Project, obtained by EnergyDay on Monday.

EnergyDay gathered that the Rural Electrification Agency(REA) is planning to deploy over 10,000 SHS units in underserved rural households and MSMEs across Nigeria, impacting about 50,000 people with the specific aim of aiding social and economic development through the signed grant agreement.

REA further disclosed that it is committed to utilising the World Bank – African Development Bank Group-funded Nigeria Electrification Project to power Nigeria, one community at a time using mini-grids and standalone SHS.

The grant agreements, according to the REA, are the Output Based Fund (OBF) for the sale of solar home systems to homes and businesses across Nigeria. The agreement also contained the Performance Based Grant (PBG) for the deployment of mini-grids to unserved and underserved communities in Nigeria.

REA, Head PMU-Nigeria Electrification Project said, “With these grants, the company will play a major role in enabling the NEP Solar Home Systems (SHS) component to achieve its goal of electrifying 1 million Nigerian households in 5 years using renewable energy solutions.

Ms. Anita that the deal will impact more people in the rural area helping the agency to achieve its goal of improving the power sector. We have deployed over 700,000 SHS units impacting over 3.5 million people.

She said, “The deal with Baobabplus will see rural areas have improved electricity which will greatly improve the power sector.”

Ahmad Salihijo, Managing Director, REA, had earlier expressed optimism over the determination of the Federal Government to transform the power sector

He also acknowledged the support of the World Bank and the African Development Bank to improve electricity access through the provision of grant funding and technical assistance.

He said, “REA, in collaboration with the Federal Government of Nigeria, has secured funds from the World Bank ($350m) and African Development Bank ($200m). These funds will go a long way in helping us connect communities, schools, and homes to constant electricity.”