The federal government of Nigeria is pushing up the disbursement of the N140 billion solar intervention fund, this is being facilitated by the Central Bank of Nigeria (CBN) to close the wide gap in the energy sector, especially in Nigeria’s rural communities.
During the last quarter of 2020, the CBN had presented the fund that would offer obligors access to a credit facility that would not surpass a maximum of N500 million, with the purpose of providing affordable mini-grid solutions to rural dwellers.
The CBN lay down that the pathways to energy access, financial inclusion, and poverty eradication were closely related and needed a rapid scale of pay-as-you-go off-grid technologies that would create a $2 billion annual market opportunity.
According to the CBN, the solar connection scheme aims to expand energy access to 25 million Nigerians (five million new connections) through the provision of solar home systems or connections to a mini-grid.
According to the Apex Bank, 85 million Nigerians do not have access to grid electricity, representing 43 percent of the country’s population and making it the largest energy access deficit country in the world.
In addition, the 2020 World Bank Doing Business report, ranked Nigeria 171 out of 190 countries in electricity access.