A federal government Rural Electrification Strategy and Implementation Plan has disclosed that to meet its national target of providing electricity to all its citizens by 2040, Nigeria will need about N1.4 trillion.
Contents of the strategy document stated that within the periods 2020 and 2040 the government will attempt to achieve electrification rates of 75 and 100 per cents respectively, requiring N525.8 billion and N1.4 trillion as well.
But this cost would also include the operational costs of the Rural Electrification Agency (REA), an agency of the government set up to manage Nigeria’s rural electrification processes.
It equally explained that the funding expected to be domiciled in a shielded rural electrification fund, would be contributed by a combination of sources comprising governments (federal, state, and local); companies in Nigeria; international donors and development banks; commercial banks (both domestic and foreign); and equity investors amongst others.
Considering Nigeria’s age long peculiar challenges of funding rural electrification projects, the document noted that a systematic plan had been created to ensure constant financial contributions to meet the target. Governments; Discos; Gencos; donors and development partners; as well as commercial banks would be encouraged to contribute to the pool, the document noted.