The Federal Ministry of Power, Works, and Housing, has estimated the rural electrification project to cost N1, 440 billion (US$ 9billion).
According to the Rural Electrification Strategy and Implementation Plan (RESIP) obtained by SweetcrudeReports, the total costs towards the rural electrification ambition by 2020.
However, the plan said it will take time to establish the national capability required to expand electrification in rural at the enormous rate required, saying an interim target proposed for 2016 alone, was to add 1million connections and 800MW of generation capacity in rural areas.
This, the ministry said would gulp capital of N192billion (US$1.2 billion).
It said only if, by 2020, urban electrification reaches 95% and rural electrification reaches 60% can the national target of 75% be achieved.
This will only happen by connecting more than 10,000,000 additional rural households (assuming 7 persons per household), according to the plan.
The new generating capacity required to serve the additional domestic and non-domestic rural demand is around 6,000MW.
“This is more than the current capacity of the entire Nigerian power system. Achieving this would take the rural electrification rate to 60%”, it said.
The federal government has said pursuing this target is part of its overall objective of providing access to power for all Nigerians in order to stimulate economic development and improve the quality of rural life.
The government said it is committed to improving the standards of service, the affordability of power, and the financial sustainability of rural power service operators.
“The goal of the FGN to increase electricity access to 75% and 90% by 2020 and 2030 respectively. This is because more than half of the populations are rural dwellers with low levels of electrification” it said.