The Nigeria Sovereign Investment Authority (NSIA) and All On, a Nigerian impact investor with focus on renewable energy, have announced a collaborative initiative to deepen electricity supply in energy-deprived communities across the country.
Under the arrangement, the partners will deploy Distributed Renewable Energy (DRE), a transformative approach that utilizes small-scale solutions like solar mini-grids and home systems, to reach areas abandoned by traditional grid infrastructure.
Commenting on the partnership, the Managing Director, All On, Caroline Eboumbou, explained that DRE offered agility and efficiency, capable of illuminating remote villages and towns that had not enjoyed power supply over the past years.
According to her, mini-grids alone hold the potential to empower millions of low-income households and small businesses, while generating a staggering $10 billion in annual revenue.
The expert, however, pointed out that unlocking this bright future required more than just technology, hence the importance of the firm’s Demand Aggregation for Renewable Technologies (DART) programme, which was launched in 2022, to serve as a powerful catalyst, bringing together multiple DRE developers and negotiating advantageous prices for renewable energy components and secure financing from commercial lenders.
Eboumbou projected: “In less than two years, DART has funded 12 companies, paving the way for over 40 mini-grids and 47,000 connections. Over 230,000 lives and businesses are set to be positively impacted, a testament to DRE’s transformative power.”
She cited the example is the Chito Community project in Benue State where a 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.
The All On CEO further clarified that the impact of DRE extended far beyond mere illumination as it provides clean, reliable energy fosters economic development, empowers entrepreneurship, and strengthens healthcare services as well as empowers communities, particularly women, to participate meaningfully in the economy and shape their own destinies.
Speaking on the immense potential of the partnership, the NSIA’s Managing Director/CEO, Aminu Umar-Sadiq, called for continued investment from development partners through the provision of funding and technical assistance and also charged the private sector to innovate and develop scalable, affordable DRE solutions.
He said: “We are committed to leading the charge in this collective effort. We are working closely with partners to address the barriers to DRE adoption and to scale up its deployment across Africa. We believe that DRE is not just a solution to energy poverty, but a catalyst for a more sustainable, equitable, and prosperous future.”
Aminu noted that DRE was key to NSIA’s Renewable Investment Platform for Limitless Energy (RIPLE) designed to achieve expanded energy access to the un-served and under-served segments of the population by targeting displacement of diesel-powered generation for commercial and industrial consumers.
NSIA is actively demonstrating this commitment through initiatives like the Construction Finance Warehouse Facility (CFWF), established in collaboration with InfraCredit. This NGN10 billion facility unlocks long-term capital for sustainable Greenfield infrastructure projects, attracting further investment through domestic capital markets.
However, Umar-Sadiq called for more enabling policies, financial incentives, and streamlined regulatory processes are essential for DRE to reach its full potential.
He maintained that the commitment to DRE by NSIA and All On marked a new dawn for energy-deprived communities in Nigeria. As DRE illuminates villages and towns across the country, it signifies more than just access to electricity – it represents a pathway to economic growth, empowerment, and a brighter future for millions.
