The Central Bank of Nigeria has introduced a solar intervention fund that will offer obligors access to credit facility that will not exceed a maximum of N500m maximum, with the aim of providing affordable electricity to rural dwellers.
The CBN disclosed this in a document on Monday entitled ‘Framework for implementation of the solar connection facility.’ It said, “The central bank has introduced the solar connection intervention facility to complement the Federal Government’s effort of providing affordable electricity to rural dwellers through the provision of long-term low-interest credit facilities to the Nigeria Electrification Project pre-qualified home solar value chain players that include manufacturers and assemblers of solar components and off-grid energy retailers in the country.”
On the working capital, it said the amount would “be determined as a percentage of the average of three year adjusted projected cash flows subject to the maximum of limit of N500m.”
It said the pathways to energy access, financial inclusion and poverty reduction were closely linked and required rapid scale of pay-as-you-go off-grid technologies that would create a $2bn (N7.5tn) annual market opportunity, with penetration currently less than five per cent of total market potential.
