Nigeria's Rural Electrification Agency to Bring Energy-Efficient Electricity to 24,500 MSMEs

16 Jun 2023

The Rural Electrification Agency (REA) in Nigeria has unveiled an ambitious plan to bring energy-efficient electricity to 24,500 micro, small, and medium enterprises (MSMEs) through the Productive Use of Equipment (PUE) and appliances. This initiative is part of the larger Nigeria Electrification Project (NEP), aimed at improving energy access for 1,050,000 people.

With a focus on rural and underserved communities, the REA is determined to ensure easy access to energy-efficient and productive equipment. The PUE initiative will specifically promote the adoption of low-cost appliances in unserved and underserved areas, stimulating rural productivity, economic growth, and overall development.

Salihijo Ahmad, the Managing Director of the REA, highlighted the support received from the African Development Bank (ADB) in implementing this project. The PUE initiative is set to contribute to the sustainability of off-grid energy infrastructure in communities across Nigeria.

Ahmad emphasized that the REA's primary objective is to provide electricity access to households and MSMEs in rural areas that currently lack this basic necessity. To achieve its goals, the agency has been actively collaborating with the private sector. In addition to ensuring access to electricity, the REA is keen on promoting the productive use of equipment and appliances to drive socio-economic development in off-grid communities.

The NEP, financed by the World Bank and the African Development Bank, targets households without access to electricity as well as underserved MSMEs, federal universities, and teaching hospitals throughout Nigeria. The signing of the grant agreement for the productive use appliances component is considered a significant milestone in the implementation of the ADB-funded NEP.

Expressing gratitude for the cooperation of energy access companies, the REA chief urged them to fully align with the program's objectives to achieve transformative change. By providing energy-efficient electricity to MSMEs and rural communities, the REA aims to enhance livelihoods, stimulate economic growth, and foster sustainable development in Nigeria.

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