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.