Rural electrification projects seeking for funding in the Rural Electrification Fund (REF) of the Rural Electrification Agency (REA) would be able to get up to 75 per cent of the funds they need through the REF, Nigeria’s power minister, Mr. Babatunde Fashola, has disclosed.
Fashola, disclosed on Monday in Asaba that the REA has finally released a guideline it will utilize in the management of the REF, and funding of rural electrification projects that are approved to benefit from it.
He said on the minimum, projects’ initiators would be able to get up to $10,000 and $300,000 on the maximum to execute their projects if approved to benefit from the REF.
“By way of explanation the Rural Electrification Fund was created by Section 88 of the Electric Power Sector Reform Act (EPSRA) of 2005 to promote support and provide rural electrification access.
“The fund will provide a partial single payment capital subsidy and or technical assistance to eligible private rural power developers, NGOs or communities to invest in options such as hybrid mini grids or solar home systems to scale up rural access to electricity,” said Fashola.
He added: “Those who will be served are the unserved and underserved rural communities. What they are likely to get are minimum amounts of $10,000 (N3.5m) and maximum amounts of $300,000. (N106m) or 75% of project cost which ever is less.”
The minister noted that the REA will shortly publish details of guidelines and eligibility.