The Rural Electrification Agency (REA) has signed memoranda of understanding (MoUs) aimed at electrifying key sectors in the country, including the Nigeria Police Trust Fund (NPTF), National Power Training Institute of Nigeria (NAPTIN), and the National Agricultural Development Fund (NADF) among others.
The MoUs signed in Abuja on Friday, with five federal government agencies and nine renewable energy service companies were for the generation of about 1,000 megawatts of electricity through solar systems.
REA is seeking to catalyse $1.1 billion private sector investments using the federal government’s $750 million World Bank loan to provide seed capital.
Managing director/CEO of REA, Abba Abubakar Aliyu, noted that the partnership was more than a formal signing. “This is a roadmap, a partnership between the REA and these agencies to tackle Nigeria’s electricity challenges,” he emphasised.
Following the recent enactment of Electricity Act 2023, which decentralised and liberalised Nigeria’s electricity sector, Aliyu stressed the importance of a coordinated approach to ensure efficient interventions.
“The REA, by virtue of the Act, is required to develop the National Electricity Strategy and Implementation Plan, a bottom-up approach that will map each community’s infrastructure and integrate it into a national plan.
“This plan will encompass targeted strategies for sectors such as education, health, and agriculture, with the Nigeria Agricultural Development Fund playing a key role,” Aliyu explained.
“In total, we are looking at 1,000MW portfolio generation capacity across the country over a period of three years. In monetary terms, one of the greatest achievements of the Mr. President is the catalysing of the $750 million Distributed Access Rural Renewable Energy Scale-up funding that is managed by the REA.
“This $750 million is supposed to catalyse $1.1 billion private sector investment. What we are doing here is to catalyse that $1.1bn while the $750 million will be used as a capital subsidy to incentivise the private sector to put in their $1.1 billion towards providing these electricity infrastructure in the country,” he explained.
He said the Nigerian Electrification Project and the Distributed Access Rural Renewable Energy Schedule Programme were designed to electrify 17.5 million Nigerians.
He also highlighted the security aspect of the initiative. “One of the key drivers of electrification is to address the security challenge in the country.We are signing structured arrangements with these agencies to enhance their work in addressing security challenges,” he said, underscoring the importance of working with the NIS and NPTF.
However, Aliyu noted that the task of electrification would largely rely on the private sector. “The minister of Power has made it clear that the government alone cannot address the electricity challenge.
“The role of the private sector is to bring in funds and financing. That’s why REA developed the concept of RESCOs to harness private investment in renewable energy.”
To further this goal, REA signed additional MoUs with several RESCOs that have demonstrated the capacity to invest in Nigeria’s renewable energy sector. “These RESCOs bring resilience and an ability to incentivize financing, which is critical for addressing our energy challenges,” said Aliyu.
The day’s events included presentations on REA’s ongoing programs, such as the Rural Electrification Fund and the Distributed Access Rural Renewable Energy Schedule Program, designed to bring electricity to 17.5 million Nigerians. Aliyu stated, “We are seeing how these programs can deliver on the President’s vision, and I sincerely hope we will fulfil every commitment made here today.”
With financial backers ready to invest, Aliyu remarked on the potential for RESCOs to engage directly with financiers. “They are eager to see projects and invest in them,” he added.
He stressed that the agreement represents a substantial commitment to improving electricity access, addressing sectoral needs, and bolstering national security through reliable energy solutions.
Also speaking, head of the Nigeria Electrification Project, Olufemi Akinyelure, said the REA has developed the Renewable Energy Service Companies (RESCOs) Strategy as part of its broader efforts to scale up improve energy access, particularly in underserved and off-grid rural areas and ensure sustainability of off-grid projects.
He highlighted the benefits of the RESCO model, which leverages private-sector investment and expertise while REA provides support through policy frameworks and financing. “This collaborative model ensures the long-term success of off-grid electrification projects and makes energy accessible and affordable, especially for low-income households and businesses through flexible payment options like the Pay-As-You-Go (PAYG) system,” Akinyelure explained.
According to him, the RESCOs model also promotes scalability and sustainability by encouraging providers to invest in large-scale projects and enhance corporate governance among local developers.
“Additionally, the strategy aims to create a skilled local workforce and boost Nigeria’s economy through the local production of renewable energy components. Vertically integrated RESCOs will play a vital role across the energy value chain, from manufacturing to delivery, supporting Nigeria’s transition to cleaner energy.
“The framework sets the stage for an impactful partnership that will transform Nigeria’s energy landscape,” said Akinyelure, emphasising REA’s commitment to driving progress toward a sustainable energy future.
On his part, the executive secretary of the Nigerian Police Trust Fund (NPTF), Mohammed Sheidu, noted that the initiative, aligned with the government’s Renewed Hope agenda, aims to deliver sustainable and reliable energy to police stations, barracks, and training institutions, reducing reliance on traditional power sources.
“This collaboration is a testament to our shared commitment to harness renewable energy for the benefit of the Nigerian Police Force and, ultimately.
“The deployment of solar-powered infrastructure will provide a stable energy supply, enabling our personnel to better serve and protect,” he said.
Sheidu emphasised that the MoU focuses on planning, implementation, and monitoring of clean energy projects for key police facilities, including the integration of electric vehicle infrastructure.
According to him, these measures not only enhance police operations but also align with broader goals of sustainability and energy security. “Together, we are investing in the security and future of Nigeria,” he added.
Sheidu commended REA’s dedication to expanding energy access across rural and underserved areas, expressing confidence that this partnership would set a new standard for inter-agency collaborations. “This partnership showcases what can be achieved when we unite towards a common goal,” he concluded.
On her part, the Comptroller General, Nigeria Immigration Service, Kemi Nana Nandap said: “the project we are embarking on with REA comes at a critical time. At the Nigerian Immigration Service, we are deploying technology to manage our borders. This includes the IBS system at all our borders, eGates at airports, and our Tier 4 data centre, one of the best in the world. We also have a command and control center, along with the API and PNR, as well as our PKD and PKI—all vital border solutions.”
Commenting the MOUs President, Nigeria Consumer Protection Network, Kunle Kola Olubiyo lauded the development, noting that the essence of power sector privatisation was to promote alternatives for the end-users and competitive electricity market.
“We are all aware of the recent development in the power sector, where we have line trippings and incessant power grid collapses. And particularly for the security and paramilitary ecosystem in Nigeria, you cannot afford to operate an immigration service for management of migration or security architecture without a reliable power supply.
“A trip in the national grid could lead to loss of data and energy. So what is taking place here today, of course, we cascade into reduction of rural-urban migration in Nigeria, because the essence of this conversation is we want to upscale universal access to energy, making sure that the clusters are linked to stable and reliable power supply,” he noted.
