Nigeria taps private sector to boost electricity mix

Nigeria has secured about $200 million from the Japanese International Development Corporation that will be added to the $750 million DARES project as it looks to widen electricity access to Nigerians. The country is making strides in tapping into the private sector to improve its power sector infrastructure and electricity supply mix. Temitope Kolade, Associate Director of the Oil, Gas, and Power Practice at Andersen Nigeria, discusses the latest developments in the power sector in a recent interview. The conversation focused on the efforts to secure funding for renewable energy projects and the involvement of the private sector in boosting electricity access. Nigeria's Rural Electrification Agency recently secured $950 million to enhance renewable energy electricity supply and is targeting an additional $1 billion from the private sector. Kolade emphasized the importance of these investments and highlighted the need for a strategic implementation plan to ensure the success of these initiatives. The funds secured by the Rural Electrification Agency, coupled with support from programs like the World Bank-funded DIRES project and collaborations with private sector companies, demonstrate a promising shift towards diversifying Nigeria's energy sources. Kolade also pointed out the challenges around affordability and the need to leverage local resources, such as solar irradiance and lithium, for renewable energy production. The establishment of the Renewable Asset Management Company aims to leverage existing infrastructure assets to raise close to one trillion naira in assets and attract additional investment in the renewable energy sector. The company will provide a capital base for accessing funding from capital and debt markets, showcasing productive assets that can attract investors. Overall, Nigeria's focus on expanding its renewable energy capacity and engaging the private sector for investments signals a positive trajectory in the country's energy sector development.