NSIA, All On launch initiative to light up remote rural communities

Onome Amuge

In a strategic move to provide more Nigerians with access to clean and reliable energy, the Nigeria Sovereign Investment Authority (NSIA) has partnered with All On, a Nigerian impact investor that focuses on the deployment of renewable energy. 

The two organisations will achieve their goal of providing energy to communities across Nigeria through a technique known as Distributed Renewable Energy (DRE). DRE is a small-scale approach that uses renewable energy solutions like solar mini-grids and home systems to reach areas that are not served by traditional grid infrastructure. 

Caroline Eboumbou, the managing Director of All On, noted that DRE offers several advantages over traditional energy sources, such as its agility and efficiency. DRE solutions, such as mini-grids, have the potential to empower millions of low-income households and small businesses in remote areas that have been overlooked for far too long. She added that mini-grids alone could generate up to $10 billion in annual revenue, which is a significant opportunity for a country like Nigeria that is struggling with energy challenges.

“…Unlocking the bright future requires more than just technology. This is 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,” she said.

According to Eboumbou, in less than two years, the DART programme has already funded 12 companies that are paving the way for over 40 mini-grids and 47,000 connections. This, she said, will positively impact the lives of over 230,000 people and businesses, demonstrating the transformative power of DRE. The All On MD cited the Chito Community project in Benue State as an example of one of the places where the initiative is providing clean and reliable energy.

“This 350KW mini-grid, the largest isolated project in the state, will positively impact the lives of over 7,000 households and businesses, opening doors to new possibilities and economic growth,” she added.

Eboumbou also noted that the impact of DRE is far-reaching and extends beyond simply providing electricity. According to her,clean and reliable energy can foster economic development, empower entrepreneurship, and strengthen healthcare services. In particular, it can empower communities, especially women, to participate more meaningfully in the economy and shape their own destinies.

Aminu Umar-Sadiq, the MD/CEO of NSIA, acknowledged the immense potential of DRE and called for continued investment from development partners, in terms of both capital and technical assistance. He also challenged the private sector to innovate and develop scalable and affordable DRE solutions that can meet the diverse needs of communities across Nigeria. 

Umar-Sadiq emphasised the need for collective effort and collaboration in order to fully realize the potential of DRE. He noted that the NSIA is working closely with partners to address the barriers to DRE adoption and to scale up its deployment across Africa. According to him, DRE is not just a solution to energy poverty, but a catalyst for a more sustainable, equitable, and prosperous future for all. 

Umar-Sadiq noted that DRE is a central component of NSIA’s Renewable Investment Platform for Limitless Energy (RIPLE), which aims to expand energy access to unserved and underserved segments of the population. Specifically, the RIPLE programme aims to displace diesel-powered generation for commercial and industrial consumers, which is often costly and environmentally harmful. 

“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,” he said. 

While Umar-Sadiq acknowledged the many benefits of DRE, he also noted that more needs to be done to create a truly enabling environment for its widespread adoption. Specifically, he called for policies that support the development of DRE, as well as financial incentives and streamlined regulatory processes. He noted that without these measures, the full potential of DRE cannot be realised.

For energy-deprived communities in Nigeria, the deployment of DRE represents more than just the ability to turn on a light. It provides a pathway to economic growth, as businesses and households can now engage in productive activities that were previously impossible without reliable power. It  provides a sense of empowerment, as communities can now take control of their energy supply and make decisions that best suit their needs. It also signifies hope for a brighter future, as the benefits of access to reliable and sustainable energy can have a transformative impact on the lives of millions of people.