In a concerning development for Nigeria’s energy sector, the United States Agency for International Development’s (USAID) decision to withdraw its renewable energy assistance threatens to derail the nation’s rural electrification efforts. With over 85 million Nigerians currently lacking electricity access, this withdrawal could have far-reaching consequences for the country’s development.
USAID’s $150 million commitment to off-grid solar projects through initiatives like Power Africa and Electrify Nigeria has been crucial in expanding solar access across rural communities. The agency’s withdrawal could create a devastating $500 million investment gap in solar infrastructure.
The impact could be severe, with solar product costs potentially rising by 20-40%, affecting 30 million Nigerians. The nation’s renewable energy sector, which employs 1.2 million people, faces significant job losses, particularly among rural youth.
The withdrawal threatens to derail the mini-grid sector’s goal of electrifying 100,000 villages by 2030. Without intervention, many households may revert to using hazardous kerosene lamps and diesel generators, potentially adding 5 million tons of CO₂ emissions annually.
“This is not merely an energy challenge; it is an economic, environmental, and public health emergency that requires immediate attention from both government and private sector stakeholders,” states Bome Ojobo, CEO of Extreme Mutual Technique Limited.
The Rural Electrification Agency (REA) must now consider allocating $200 million to sustain off-grid solar expansion, while seeking new partnerships with international funding institutions and implementing supportive policies to maintain momentum in rural electrification efforts.
—Newspot Nigeria
Source: Nairametrics
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