The recent awareness created by the UN Secretary General on the need to provide universal energy for all by 2030, which culminated in the declaration of 2012 as the “International Year of Sustainable Energy for All”, laid particular emphasis on the challenge of funding rural electrification in developing countries, and the need for innovative ways and financing options to be developed at national, regional and global levels towards achieving the ‘energy for all’ target of 2030. This research, as part of efforts towards remedying the rural electrification scourge of developing countries, particularly in Nigeria, provides financing options for rural electrification as far as the Nigerian Electricity Supply Industry (NESI) context is concerned. The study does this by first identifying appropriate least-cost electrification supply mode (Grid, Mini-grid and Off-grid), and estimating the financing requirement for providing universal energy access to rural Nigeria by 2030, using a spatial electricity planning model called the ‘Network Planner’. Results from this research shows that by the end of the seventeen year planning period (2013-2030), 98% of currently un-electrified communities will be viable for grid expansion, while only 2% will be mini-grid compatible. This is based on a proposed MV line extension of 12,193,060 metres or (12,193 kilometres), LV line length proposal of 711,954,700 metres or (711,954 kilometres), and an estimated total cost of US$34.5 billion investment within the planning period. More so, a total number of 28.5 million households are to be electrified by 2030, which is equivalent to an estimated 125million people to be provided electricity by 2030.The analysis was done for the 36 states of Nigeria and the entire country, using data from the 774 Local Government Areas of Nigeria. In addition to the Rural Electrification Fund (REF) of the FGN, which gets funding from yearly budgetary allocations from the FGN, fines obtained by NERC, surplus appropriation, interests accruing to the REF and donations from various sources, the following financing options were recommended for rural electrification in Nigeria: The establishment of a Renewable Energy Development Charge (REDC); The establishment of a Rural Electrification Fund Tax (REFT) Law; adopting rural electrification as part of Corporate Social Responsibilities (CSR) for oil and other companies; Exploring the option of Crowd-funding; and Establishing a Renewable Energy Private Equity Fund in Nigeria.

Thesis (MPA)--Stellenbosch University, 2008. / ENGLISH ABSTRACT: Due to inadequate financial resources and lack of managerial skills, in this case study the local level of governance does not have appropriate mechanisms to manage their resources adequately. It is observed that the Nigerian government cannot provide all basic amenities for the people at the grass-root level of development. Following the above scenario, rural communities do not have access to basic amenities such as electricity and pipe borne water. In Nigeria, little research has been done with regard to sustainable development in rural electrification. This study is based on the impact of community and individual participation in a rural electrification project, and shows how sustainable development plays a leading role. The study is based on a rural electrification project initiated and facilitated in 1996, and was completed in 2000 by the Ipari-Efugo Otukpa community members in Benue State in the North Central part of Nigeria. In spite of prevailing poverty in rural areas, Ipari-Efugo community members were able to be responsible for their own development without government intervention. The research includes literature studies of rural electrification projects and demonstrates how participation and sustainable development can lead to a successful community project. Irrespective of obstacles such as poverty and lack of economic empowerment, Ipari- Efugo community members are resilient and were able to provide electricity. Access to electricity can serve as a prerequisite for economic development and growth. The benefits accruable from the use of electricity outweigh the costs of providing the amenity to the community. Participation through sustainable development remains the core instrument responsible for the completion of the electricity project in Ipari-Efugo. This study encourages rural communities to take responsibility for their own development. / AFRIKAANSE OPSOMMING: As gevolg van onvoldoende finansiële middele en 'n gebrek aan bestuursvaardighede, in die gevallestudie beskik die plaaslike regering nie oor die toepaslike meganismes om hulle hulpbronne na behore te bestuur nie. Boonop blyk dit dat nasionale regerings nie alle basiese geriewe aan diegene op voetsoolvlak kan voorsien nie. Die genoemde scenario impliseer dus dat landelike gemeenskappe nie toegang het tot basiese geriewe soos elektrisiteit en kraanwater nie. In Nigerië word weinig navorsing gedoen op die gebied van volhoubare ontwikkeling in landelike elektrisiteitsvoorsiening. Hierdie studie is gebaseer op die impak van gemeenskaps- en individuele deelname aan 'n landelike elektrisiteitsvoorsieningsprojek, en toon hoe volhoubare ontwikkeling 'n toonaangewende rol hierin speel. Die studie spruit uit 'n landelike elektrifiseringsprojek wat in 2000 deur die gemeenskap van Ipari-Efugo Otukpa in die staat Benue in die noordelik-sentrale deel van Nigerië aangevoer en gefasiliteer is. Ondanks die heersende armoede in landelike gebiede, het lede van die Ipari-Efugo gemeenskap sonder die tussenkoms van die regering verantwoordelikheid vir hulle eie ontwikkeling aanvaar. Die navorsing sluit literatuurstudies van landelike elektrisiteitsvoorsieningsprojekte in, en demonstreer hoe deelname en volhoubare ontwikkeling tot 'n suksesvolle gemeenskapsprojek kan aanleiding gee. Ongeag struikelblokke soos armoede en 'n gebrek aan ekonomiese bemagtiging, was die lede van die Ipari-Efugo gemeenskap vasberade en kon hulle uiteindelik elektrisiteit aan die gemeenskap verskaf. Toegang tot elektrisiteit kan as 'n voorvereiste vir ekonomiese ontwikkeling en groei dien. Die voordele verbonde aan elektrisiteitsverbruik oortref uiteindelik by verre die koste verbonde aan die voorsiening van hierdie gerief aan die gemeenskap. Deelname by wyse van volhoubare ontwikkeling bly die sleutelinstrument vir die voltooiing van die elektrisiteitsprojek in Ipari-Efugo. Hierdie studie moedig landelike gemeenskappe aan om verantwoordelikheid vir hulle eie ontwikkeling te aanvaar.