REA Targets N7bn Fresh Tax Revenue From Solar Power Naija

The Rural Electrification Agency (REA) is targeting to generate an additional N7 billion increase in tax revenues per annum from implementation of the Solar Power Naija (SPN) Programme

It also eyed an additional $10 million in annual import substitution.

The event also witnessed the signing of Memorandum of Understanding (MoU) between the Rural Electrification Agency (REA) and Chapel Hill Denham through the Solar Power Naija Programme. The MoU aims to facilitate financing to developers for off grid electrification projects.

The managing director of the Agency, Engr. Ahmad Salihijo Ahmad, made the disclosures at the first ever investors’ matchmaking event for the SPN Programme organised in partnership with the Power Africa Nigeria Power Sector Program (PA-NPSP, USAID).

He said the programme is aimed at providing the opportunity for potential investors to pitch their financial offerings to developers, clearly stating the selection criteria and key terms.

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The REA is targeting to reach 25 million people through the N140 billion Solar Power Naija scheme, which will also create 250,000 new jobs in the energy sector.

Ahmad explained that the Solar Power Naija Programme was launched as part of the Economic Sustainability Plan (ESP) to achieve the roll-out of five million new solar connections in off-grid communities.

According to him, the programme’s objective is to Expand energy access to 25 million individuals from five  million new connections through the provision of Solar Home Systems (SHS) or connection to a mini-grid.

This also includes: “Increase local content in the off-grid solar value chain and facilitate the growth of the local manufacturing and assembly industry and Incentivize the creation of 250,000 new jobs in the energy sector.”

Salihijo further explained that the event provides a networking and matchmaking forum that brings together key investors and high-performing developers (pre-evaluated by the SPN team) in the power sector.

“As the implementing agency for Nigeria’s off-grid strategy, the REA has been working to support private developers by creating an enabling environment to facilitate investments in various ways, including access to data, policy support, grants, capacity development, stakeholder management, and most importantly financing for Developers,” he added.

While giving his remarks, the acting deputy Missions Director, USAID Nigeria, Stephan Menard encouraged private developers to take advantage in accessing financing towards improving the lives of Nigerians by delivering sustainable energy access.

He said the US government through Power Africa has supported Nigeria on 3.6 million ongrid and offgrid connections and supported the development of over 1,000 megawatts while providing training about 4,000 persons just as Nigeria still has 85 million people without access to electricity.

While calling for more investors, he disclosed that the Nigerian off-grid market is worth N9.2 billion.

On his part, the head, Solar Power Naija Programme, Barbara Izilien expressed hope that the approach will help build quick partnerships that would lead to new connections.