Nigeria spends $14bn on power supply annually – Expert

The Managing Director, Rural Electrification Agency, Mrs. Damilola Ogunbiyi, has disclosed that Nigeria spends about $14 billion yearly on inefficient generation of electricity.
According to her, the acceleration of mini-grid electricity development could reduce the huge amount spent by Nigerians as the mini grid remains the most attractive
in Africa and one of the best in the world, as its investment opportunities hit $9.2
billion.
Ogunbiyi explained that there were enormous opportunities than challenges in the provision of electricity through mini grid and solar house system.
She said, “We believe that Nigeria is the biggest and most attractive off grid opportunity destination in Africa, and one of the best locations in the world on developing mini grid and solar home
system.
“Our population of about 180 million is very attractive, even though we have also part of our population with limited and low energy access. We do have significant mark of the population having small scale generation, which relates to something in the region of 10 to 12GW; this can be translated to sustainable power supply.
“We also believe that off-grid alternative like creating mini grid and solar home system can
easily be at $9.2 billion a year, which can serve the Nigeria public and citizens $4.2 billion.”
She also disclosed that REA, with the support of the World Bank Group, was working together to provide required funding for the Nigerian Electrification Programme. According to her, the support from World Bank is expected to bring in $350 million, to be dedicated to the development of mini-grid electricity in Nigeria.
She said it was also envisaged that the fund would help provide electricity for 200,000 Nigerian households and assist 50,000 entrepreneurs in the sector.
The REA boss said that the Federal Government had created an enabling environment for mini-grid operators by provision of a mini grid regulation.
She also said that the REA, through government, had also made provision for rural electrification fund, adding that investors and developers should key into
the fund.