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FG gives subsidies to mini-grid developers

The federal government has announced plans to award subsidies to mini‑grid developers for the deployment of solar power mini‑grids at […]

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The federal government has announced plans to award subsidies to mini‑grid developers for the deployment of solar power mini‑grids at 150 underserved and unserved electricity sites across seven states. The announcement was made in a statement issued by the Rural Electrification Agency (REA) on Friday, which emphasized that the rollout will be driven by the private sector.

The REA’s Project Management Unit, operating under the Nigeria Electrification Project (NEP), recently concluded a hybrid pre‑bid conference for the Minimum Subsidy Tender (MST) programme’s solar hybrid mini‑grid component. This component is financed by the African Development Bank and is a key element of the NEP, aimed at catalyzing the Nigerian off‑grid market and scaling the deployment of solar hybrid mini‑grids. The solar hybrid mini‑grid component supports private‑sector mini‑grids in unserved and underserved areas with high economic growth potential.

In the statement, the REA explained that the MST is a private‑sector‑driven programme targeting subsidies for mini‑grid developers to accelerate solar and/or hybrid mini‑grid solutions across up to 150 sites, divided into seven lots in seven states. Over 100 private‑sector participants attended the pre‑bid conference, which served as a technical, knowledge‑driven platform for engagement between the NEP‑PMU and prospective bidders. The conference also allowed for clarification of the bidding documents, feedback on the application process, and provision of programme‑specific information to help bidders finalize their proposals.

Commenting on the event, REA Managing Director Ahmad Salihijo praised the private sector’s interest and enthusiasm, calling the Minimum Subsidy Tender a significant milestone in Nigeria’s effort to provide reliable, sustainable electricity to rural unserved and underserved areas. He affirmed the REA’s commitment to a transparent and competitive bidding process that will select qualified contractors capable of delivering the project on time, within budget, and to required quality standards.

Abba Aliyu, Head of the Project Management Unit for the NEP, noted that the MST programme exemplifies a transparent, economically viable model for delivering electricity to rural off‑grid communities. The REA highlighted that, with support from both the World Bank and the African Development Bank, the federal government continues to optimise the Nigeria Electrification Project to power off‑grid communities nationwide with clean, safe, and sustainable energy solutions.

Ifunanya

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