IFC, DRE companies partner on mini-grid expansion in Nigeria
By Olawunmi Ashafa
The International Finance Corporation (IFC) has signed an agreement with five Distributed Renewable Energy (DRE) companies to support the rollout of mini-grid projects across Nigeria.
The agreement was signed during the ongoing Mission 300 Africa Energy Summit in Dar es Salaam on Monday.
These five companies include Havenhill Synergy Ltd., Prado Power Ltd., PriVida Power Ltd., Sosai Renewable Energies Ltd., and Virtuitis Solaris Ltd.
They were part of the World Bank Group financed Nigeria Distributed Access Through Renewable Energy Scale-up programme, Nigeria DARES, being implemented by the Rural Electrification Agency of Nigeria.
As of 2021, more than 85 million Nigerians lacked access to electricity.
Businesses and households that did have access to the national grid faced unreliable and insufficient supply and were forced to rely on costly, polluting and harmful petrol and diesel run generators.
The new agreement aims to support Nigeria in closing its electricity access gap and accelerating its transition towards sustainable, efficient, and economically viable electricity supply.
The Minister of Finance and Co-ordinating Minister of the Economy, Mr Wale Edun, during the signing of the agreement, lauded the partnership between the IFC and DRE companies and emphasised the significance of the initiative in addressing energy poverty on the continent.
He said, “This is one of the first tangible actions we can point to at this summit, which will culminate in the Dar es Salaam Declaration.
“Today’s agreement will bring electricity access to 400,000 people, and we all know how transformative that is.
“I encourage us to keep up this momentum of doing rather than merely saying.”
Edun also paid tribute to the leadership of World Bank President, Mr Ajay Banga, and African Development Bank President, Dr Akinwumi Adesina, for their vision and determination.
“It is their drive and determination that have galvanised us on this important journey to bring dignity, development, and light to Africans who are literally in the dark. This mission will be their abiding legacy,” he added.
Also, Minister of Power, Mr Adebayo Adelabu, underscored collaboration between the public and private sectors to achieve universal energy access in Africa.
Adelabu emphasised the importance of partnerships in bridging the 30 billion dollar funding gap required to meet Nigeria’s energy needs.
“The name of the game is about partnership, cooperation, and collaboration. No single entity can do it alone,” the minister noted.
Adelabu highlighted the scale of funding required for Nigeria’s energy compact under Mission 300.
“Government alone cannot make this available. It requires cooperation and collaboration with the private sector, both locally and internationally,” he said.
The minister stressed the importance of combining public and private funding, including equity and debt financing, to achieve the country’s energy goals.
One of the representatives of the DRE companies, Ms Chantel Abdul, Chief Executive Officer of B. Solaris, highlighted her organisation’s efforts to drive energy access in underserved communities.
She lauded the collaborative efforts of development partners in supporting the Distributed Energy Solutions (DES) programme, which aims to provide off-grid electricity to those who need it most.
“This is evidence of our development partners’ commitment to the M-300 agenda, as outlined by the Minister of Finance. Connecting 300 million Africans, including Nigerians, to electricity is a passion that Solaris shares deeply,” she said.
Abdul also emphasised the critical role of bridge financing, which IFC is providing.
“This financing ensures that those of us building on the ground have the necessary capital, especially working capital, to invest in and scale our projects.
“For Solaris, we are committed to building 500 mini-grids in the next two years, with 100 grids planned in year one, connecting at least 200,000 customers in 10 to 15 states across Nigeria,” she said.(NAN)
Edited by Folasade Adeniran
Published By
Has also recently published
General NewsFebruary 14, 2025Tinubu pays tribute to late Pa Ayo Adebanjo
FeaturesFebruary 14, 2025Dar es Salaam Declaration: Africa’s milestone on universal energy access
General NewsFebruary 14, 2025NGO, Bournemouth University partner to tackle brain drain
General NewsFebruary 14, 2025Creative, Tourism Infrastructure Corporation will fast track $1trn economy – TDF
