Nigeria:Mini Power Grids Bring Promise Of Economic Empowerment To Rural Dwellers

Nigeria may soon see a drastic reduction in Rural -Urban migration as the country is on the verge of a boom in mini power grids that could stimulate rural economies and bring jobs to frustrated youth thinking of leaving the rural areas to the urban centers in search of elusive jobs. This is according to the Rocky Mountain Institute in a report published recently. 

From  makeshift restaurants to sawmills and barbershops, mini power grids  are set to bring down the cost of doing  business in Nigeria's rural areas where small businesses run on diesel  powered electricity generators.

The report titled, Reliable and Affordable Electricity for Nigeria: Growing the Minigrid Market ,  authored by the Rocky Mountain Institute and the Nigerian Economic Summit Group shows how minigrids can improve business profitability and stimulate a US$20 billion investment opportunity throughout Nigeria.

It reads in part "Nigeria    continues    to    focus    on    electrifying    rural    areas    of    the    country,    where    as    much    as    55%    of    the    population    remains    without    electricity    access.    Recently,    the    emergence    of    minigrids    as    a    cost-effective    option    for    electricity    provision    has    created    an    exciting    opportunity    to    rapidly    increase    electrification.    For    policymakers,    minigrids    fill    an    important    gap    between    expensive    grid    extension    projects    and    low-power    solutions    like    solar    home    systems,    and    can    help    provide    power    to    millions    of    people.    For    commercial    investors,    Nigeria’s    large    population    and    strong    economy    make    it    an    attractive    place    to    build    the    sector;    the    vast    but    underdeveloped    minigrid    market    offers    revenue    potential    of    ₦2.8    trillion    (US$8    billion)    annually    in    Nigeria    alone. 

The    Nigerian    minigrid    market    today    has    reached    an    inflection    point    -    costs    are    competitive    with    alternatives    like    diesel    and    petrol    generators,    and    projects    are    moving    away    from    grant    funding    to    commercial    investment.    At    the    same    time,    minigrid    costs    can    be    reduced    by    more    than    50%    over    the    next    three    years,    unlocking    market    scale    to    tens    of    thousands    of    sites    within    Nigeria    alone." 

In Nigeria, over  80 percent of  business owners cite the lack of affordable, steady electricity  as their main challenge as the cost of fueling such generators are are exorbitant and unsustainable.

Minigrids  will give  rural business owners a cheaper and  more reliable alternative to the diesel generators they currently  to power their businesses.

If Nigeria is serious about checking rural -urban migration and ultimately the treacherous illegal migration to Europe through the desert and the Mediterranean, stimulating rural economies through the provision of mini power grids is the way to go.