Mini Grids Market To Prompt $20 Billion Investment In Nigeria

Image result for Rocky Mountain Institute (RMI)Yemisi Izuora 

Nigeria’s mini grid investment is capable of stimulating a $20 billion investment that will accelerate economic transformation.

A report released this week by Rocky Mountain Institute (RMI) in collaboration with the Nigerian Economic Summit Group (NESG), entitled, Minigrid Investment Report: Scaling the Nigerian Market, indicated how mini-grids can improve business profitability.

According to the report, mini-grids could also stimulate a $20 billion investment opportunity throughout Nigeria.

Over 80 per cent of Nigerian business owners cite electrification challenges as their most significant obstacle mini grid can be a cost-effective solution, says new report: 

At present, only 45 per cent of the Nigerian population has access to electricity, and only 36 per cent of the population in rural areas has access to a centralised power source.

Mini-grids can provide a cost-effective solution to the demand for rural electrification, which could help businesses tap into a revenue opportunity of up to N2.8 trillion ($8 billion) per year.

“The Nigerian mini-grid space is ready to take off, and there is a huge opportunity for investment to scale the market,” said Sachi Graber, an associate at Rocky Mountain Institute and co-author of the study.

“These mini-grids could drive a significant economic change in rural Nigeria,” Graber added.

The research says that scaling mini-grids could create a $20 billion investment opportunity, as 80 per cent of Nigerian business owners cite electrification challenges as their most significant obstacle, and mini-grids could solve the most common challenges through high reliability and consistent quality

The report also provides recommended best practices for the mini-grid sector, based on current operating mini-grid projects, which can ensure success from both a business and development perspective.

The Mini-grid Investment Report presents a clear pathway to scale in Nigeria, where the mini-grid market is taking off.

RMI and NESG hope that this industry will be able to provide power to millions of individuals and small businesses within the next several years.

READ  Nigerian Mortgage Lenders Strain as Loans Sour on Job Losses

Add Comment