The Nigeria Sovereign Investment Authority (NSIA) and All On, a Nigerian impact investor focused on renewable energy, have agreed to jointly promote access to energy and opportunity to energy-deprived communities across the country.
The two agencies said the agenda would be achieved through the deployment of Distributed Renewable Energy (DRE), a transformative approach that utilises small-scale solutions like solar mini-grids and home systems to reach areas abandoned by traditional grid infrastructure.
The Managing Director of All On, Caroline Eboumbou, said DRE offers agility and efficiency, capable of illuminating remote villages and towns overlooked for far too long.
“Mini-grids alone hold the potential to empower millions of low-income households and small businesses, while generating a staggering $10 billion in annual revenue, a tantalising prospect for a nation grappling with energy challenges,” Eboumbou said.
However, she said unlocking the bright future required more than just technology, adding that this was where All On’s Demand Aggregation for Renewable Technologies (DART) programme steps in.
Launched in 2022, DART acts as a powerful catalyst, bringing together multiple DRE developers and negotiating advantageous prices for renewable energy components and secure financing from commercial lenders.
In less than two years, she said DART has funded 12 companies, paving the way for over 40 mini-grids and 47,000 connections.
Over 230,000 lives and businesses, she noted, were set to be positively impacted, a testament to DRE’s transformative power” Eboumbou said.
She cited the Chito Community project in Benue State as shining example of the DRE initiative, which is pointing out that the 350KW mini-grid, the largest isolated project in the state, would positively impact the lives of over 7,000 households and businesses, opening doors to new possibilities and economic growth.
The impact of DRE, she pointed out, extends far beyond mere illumination.
“Clean, reliable energy fosters economic development, empowers entrepreneurship, and strengthens healthcare services. It empowers communities, particularly women, to participate meaningfully in the economy and shape their own destinies,” she said.
Recognizing the immense potential of the DRE, the MD/CEO of NSIA, Aminu Umar-Sadiq, called for continued investment from development partners, providing both capital and technical assistance.
Umar-Sadiq also challenged “the private sector to innovate and develop scalable, affordable DRE solutions”.
He said the two agencies were committed to lead the charge in the collective effort, declaring they would be working closely with partners to address the barriers to DRE adoption and to scale up its deployment across Africa.
“We believe that DRE is not just a solution to energy poverty, but a catalyst for a more sustainable, equitable, and prosperous future,” he said.
DRE is central to NSIA’s Renewable Investment Platform for Limitless Energy (RIPLE) which wants to achieve expanded energy access to the unserved and underserved segments of the population.
RIPLE is expected to target displacement of diesel-powered generation for commercial and industrial consumers.
NSIA is actively demonstrating this commitment through initiatives like the Construction Finance Warehouse Facility (CFWF), established in collaboration with InfraCredit. This N10 billion facility unlocks long-term capital for sustainable greenfield infrastructure projects, attracting further investment through domestic capital markets.
However, Umar-Sadiq called for more enabling policies, financial incentives, and streamlined regulatory processes are essential for DRE to reach its full potential.
This commitment to DRE by NSIA and All On, marks a new dawn for energy-deprived communities in Nigeria. As DRE illuminates villages and towns across the country, it signifies more than just access to electricity – it represents a pathway to economic growth, empowerment, and a brighter future for millions.
