The Managing Director, Rural Electrification Agency (REA), Mrs Damilola Ogunbiyi at a stakeholders workshop on Thursday, officially unveiled the Rural Electrification Fund (REF), a scheme to provide funding for rural power projects done by private investors to ensure 60% of Nigerians are connected to electricity by 2020, Daily Trust reports.
She noted that her agency targets energising 60% of rural areas which involves connecting 1.1 million rural households every year from 2015 to 2020. The agency recently completed the guidelines for the operation of the REF which will allow private rural power developers, NGOs and communities to get a capital subsidy from N3.5 million (about $10,000) to N106m ($300,000) to cover 75% of the project cost.
According to the Rural Electrification Strategy and Implementation Plan (RESIP) document obtained at the workshop, the implementation for the 2020 target will range from N311 billion to N519bn. The Fund will be put under a Trust that will manage the disbursements under a contract agreement. The agency has sought for the public to bid for this before Monday, December 11, 2017.