UNDP, BOI seal $2m solar energy deal

As part of its target to boost productivity in rural areas through provision of access to renewable energy, the Bank of Industry, (BOI) yesterday signed a $2m deal with the United Nations Development Programme (UNDP) for the implementation of solar electrification projects in some select off-grid rural communities in Nigeria.

Six communities, spread across the six Geo-political zones where the bank has subsisting relationship for the development of Micro Small and Medium Enterprises (MSMEs), are already benefiting from the pilot phase of the project.

Waheed Olagunju, acting managing director of BOI, while addressing journalists during the signing of the agreement expressed optimism that the signing of the Cost Sharing Agreement with UNDP would facilitate the replication and scaling up of the solar energy projects in more communities across the country.

According to Olagunju, the blend of BOI’s contribution in the sum of US$1.4 million as debt financing for the projects, with UNDP’s grant contribution of US$600,000 will provide the much needed stimulus to scale up the projects in view of the attendant reduction in the cost of deployment and enhancement of its overall viability.
In scaling up the rural electrification project, Olagunju noted that the bank had been buoyed by the catalytic effects it had had in the six communities where the projects had been deployed.

Olagunju hinted that the target of the bank is to have over 100,000 off-grid homes lit in the next five years as the Bank intends to extend the project to more households.

The BOI Boss explained that “the provision of solar electricity has reduced energy costs, created more micro businesses, improved healthcare and quality of education, and generally provided a new lease of life for indigenes of these otherwise unserved communities.”

Speaking at the event, Mandisa Mashologu, UNDP Acting Resident Representative, said the Partnership agreement will certainly ensure that the two organizations scale up their efforts at providing safe and environmentally friendly energy to the people in line with the Paris agreement.

Amadi Nnamdi and Harrison Edeh