The Minister of Power, Works and Housing, Mr Babatunde Fashola has said the Rural Electrification Agency (REA) has completed the guidelines for the operation of the Rural Electrification Fund (REF) where rural power developers would get from N3.5m to N106m to improve rural electricity.
Speaking at the 21st power sector meeting held at Asaba, Delta state on Monday, Fashola said it will help vulnerable groups and communities gain access to funding to support their electricity development programme.
He said private rural power developers, NGOs and communities are likely to get a capital subsidy from N3.5 million (about $10,000) to N106m ($300,000) to cover 75 per cent of the project cost.
"The fund will provide a partial single payment capital subsidy and or technical assistance to eligible private Rural Power Developers, NGOs or communities to invest in options such as hybrid mini grids or solar home systems to scale up rural access to electricity.
"Those who will be served are the unserved and underserved Rural Communities. The REA will publish details of guidelines and eligibility," the Minister said.
Fashola also told the sector participants that the court last Thursday approved the dispute settlement for the N37bn meter contract hanging since 2003, after the Federal Executive Council (FEC) approved earlier this year.
"This means that there will be N37bn available for meter supply by the contractor to DisCos who want to partner and can reach their independent agreement," Fashola said noting that the Nigerian Electricity Regulatory Commission (NERC) was working on the regulations.
The Minister also said the international customers comprising Benin Republic and the Republic of Niger have paid $64.630m for energy consumed to the Nigerian Bulk Electricity Trading Plc (NBET) which will make the processes for distributing the fund.