- REA plans to eradicate challenges associated with off-grid financing.
- The MoU will catalyse long-term investments in Nigeria’s off-grid space.
The Rural Electrification Agency has officially signed a Memorandum of Understanding (MoU) with Infrastructure Credit Guarantee Company Limited (InfraCredit), a third-party guarantor for approved developers under the Solar Power Naija (SPN) programme. The MoU aims to strengthen the strategic partnership between the REA through the SPN Programme and InfraCredit to catalyse long-term local currency investments into the Nigeria solar off-grid space.
As a strategic reaction to the impact of the COVID-19 pandemic, the SPN Programme was launched as a critical component of the Federal Government’s Economic Sustainability Plan (ESP). The SPN is being implemented by the REA to ultimately meet the objectives of providing renewable energy access to 5 million households, impacting about 25 million Nigerians while providing 250,000 new renewable energy jobs. The Programme also aims to improve local content in the off-grid space by supporting the financing of upstream companies in the business of manufacturing and assembly.
While commending the InfraCredit team, led by its Managing Director, Chinua Azubike, the MD/CEO of REA, Engr. Ahmad Salihijo Ahmad reiterated the relevance of such deliberate partnerships and the need to support private sector players in the off-grid sector consistently. He added that with the quality of the Facility being provided by InfraCredit under the SPN, developers can reach more homes and communities across the nation.
The Managing Director of InfraCredit, while emphasizing the sustained commitment of the REA reaffirmed the company’s commitments to eliminate challenges lenders face within the ecosystem through the simplification of transactions which allows prompt delivery of off-grid infrastructure to Nigerians. He added that the SPN Programme, led by Barbara Izilein, Head SPN, has been supportive so far and they expect this support to continue as they expand their portfolio of clean energy projects in the country.
The Agency’s Executive Director, Technical Services Engr. Barka Sajou expressed his delight about the strategic partnership while commending InfraCredit and other private sector players who have keyed into the REA mandate to provide sustainable energy to the unserved and the underserved.