NIGERIA: REA subsidizes Bboxx solar home systems

Bboxx Energy Access Nigeria is a beneficiary of the Rural Electrification Agency (REA) Output Based Grants (OBF) scheme. This mechanism is implemented under the Nigeria Electrification Project (NEP), which aims to increase access to electricity for households and businesses, mainly in rural areas.

Under REA’s OBF scheme, the Nigerian subsidiary of British company Bboxx will receive grants to install solar home systems (SHS) for households and micro, small and medium-sized enterprises (MSMEs). Funding for REA is provided by NEP partners, including the African Development Bank (AfDB) and the World Bank.

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Access to the OBF program is a stepping stone for Bboxx, which only launched operations in Nigeria in October 2021. The Mansoor Hamayun-led company has a clear goal of electrifying 20 million people as well as MSMEs over the course of of the next 10 years. To meet this challenge, Bboxx is backed by Bamboo Energy Access Multiplier (BEAM), a $50 million fund launched four years ago with Bamboo Capital Partners, a Luxembourg-based private equity firm.

Bboxx started its operations in Nigeria focusing on Badagry, Ikorodu, Ijebu Ode, Abeokuta, Ogbomosho and Ibadan. Its operations also extended to Osun, Ekiti and Ondo states. The solar home system provider estimates that expanding its operations in Nigeria will create 10,000 green jobs. Above all, it will help reduce the electrification deficit in rural areas of Nigeria, where the federal government estimates the current rate at 45%.

Jean-Marie Takouleu

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