CBN Releases Framework for Implementation of $2bn Solar Projects

By simplegurl • a week ago • 4078 views • 462 comments

Central Bank of Nigeria (CBN) yesterday made public the framework for the implementation of the solar connection facility, which it said would create about $2 billion yearly market opportunity.

The apex bank also yesterday reiterated that its aggressive deployment of unconventional policies since the outbreak of the COVID-19 was to help manage the supply shock in the system as well as calm inflationary pressure.

The apex bank noted that with less than five per cent penetration currently, of total market potential, the solar programme would see the rollout of five million new solar-based connections in Nigerian communities.

In April this year, the bank said it was setting aside an initial intervention fund of N500 billion over the medium term for manufacturers to procure equipment that would fast-track local production, especially environmentally-friendly energy production.

On the framework released yesterday on its website, the bank said the initiative under the Economic Sustainability Plan (ESP), would further generate about N7 billion in terms of taxes and $10 million in annual import substitution.

Part of the guidelines, the bank said, would be the total prohibition of the use of the facility to finance the importation of fully assembled solar components and Balance of System (BoS).

It added that the eligible obligors should demonstrate verifiable evidences of technical capacity, must show financial capacity and provide evidence of an irrevocable off-take agreement with one or more Nigeria Electrification Project (NEP) prequalified companies.

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