Rural Electrification Agency signs grant to provide MSMEs with energy efficient appliances

Article summary

  • Nigeria’s Rural Electrification Agency (REA) plans to provide rural communities with access to electricity through energy-efficient and electric-productive equipment.
  • The initiative is tagged Productive Use Equipment and Appliances (PUE) and aims to provide 24,500 MSMEs with energy-efficient appliances.
  • REA has support from the World Bank and African Development Bank.

Nigeria’s Rural Electrification Agency (REA) has put plans in place to ensure rural communities have access to energy-efficient and electric-productive equipment as part of efforts in implementing its Productive Use Equipment and Appliance (PUE).

The PUE initiative is geared towards encouraging unserved and under-served rural communities to become productive and witnessed accelerated growth and development through the use of low-cost productive equipment.

The flagship initiative tagged Nigeria Electrification Project (NEP) aims to provide 24,500 Micro Small and Medium Entreprises (MSMEs) with energy-efficient productive use appliances. The REA believes this program will expand the number of electricity users to over a million people.

Comments on the project from REA’s MD 

The Managing Director of the REA, Mr. Ahmad Salihijo Ahmad speaking during grant the signing of the ceremony of the productive use equipment and appliances said the PUE will drive sustainability of off-grid energy infrastructure across the country.

In his words,

  • “We are here for the Grant Agreement Signing for the Productive Use Appliances Component of the Nigeria Electrification Project (NEP) under the African Development Bank funding stream.

At REA, our mandate is to provide access to electricity to unserved and underserved households and MSMEs in rural communities of Nigeria. The Agency from inception has continued to collaborate and support private-sector participation in our dedication and commitment to achieve this mandate.

Beyond keeping the lights on, we are very deliberate about the optimization of productive use equipment and appliances to catalyze socio-economic development in off-grid communities.

We understand how important it is for beneficiaries of off-grid technologies to appreciate the windows of possibilities sustainable energy presents. This is why this component is very important”

International Partners in the Project 

Speaking further on where the agency will source funding from, the M.D of Rural Electrification Agency (REA) remarked thus

  • “Through the REA, the Nigeria Electrification Project (NEP) which is funded by the World Bank and the African Development Bank was established to increase access to electricity services to unserved and underserved households, micro, small and medium enterprises (MSMEs) in the rural communities as well as Federal Universities and Teaching Hospitals throughout Nigeria.”

He added,

  • “Today’s event marks a milestone in the implementation of the African Development Bank-funded Nigeria Electrification Project where Energy Access Companies (EACs) are supported through the energy efficient productive use subsidy program to encourage the use of low-cost productive use appliances at unserved and underserved communities to improve rural productivity, economic growth, and also rural employment.
  • “I would like to use this opportunity to appreciate the energy access companies for their continuous cooperation. I urge you all to align fully with the impactful objectives of this programme to achieve transformative change.
  • “We have achieved a lot through the NEP but you will agree with me that there is so much more to be done, and we must continue to push forth to achieve our objectives.”

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