By Abbas Nazil
The Rural Electrification Agency (REA) of Nigeria has signed multiple Memoranda of Understanding (MOUs) aimed at unlocking over ₦500 billion in private-sector-led renewable energy investments.
This milestone was marked at an event themed “Strengthening Partnership for Sustainable Energy Access and Socio-Economic Development,” held in Abuja on July 28, 2025.
The event brought together stakeholders from sectors including security, agriculture, banking, correctional services, and clean energy.
Speaking at the event, REA Managing Director, Abba Aliyu, emphasized that the MOUs are not ceremonial gestures but actionable frameworks to produce measurable results.
He addressed public skepticism surrounding such agreements, affirming that REA’s approach is different and backed by a history of deliverables from previous MOUs.
Aliyu outlined key outcomes from earlier agreements, including the deployment of four smart police stations in partnership with the Police Trust Fund and the establishment of a renewable energy testing and simulation centre in collaboration with Huawei.
He also highlighted financial mobilization achievements such as ₦100 billion in private sector debt funding from First City Monument Bank for renewable energy service companies and \$20 million in concessional debt sourced from the International Finance Corporation, benefiting four RESCOs.
Additionally, the agency has developed the NextGen programme, which has trained and secured job placements for 131 Nigerian youths in the renewable energy sector.
Aliyu disclosed that a new partnership with Barton-Damon would help demonstrate the viability of commercial—rather than solely public—financing in driving renewable infrastructure.
The initial funding target of ₦500 billion will be rolled out in three phases and used to scale infrastructure deployment nationwide.
He noted that REA has also signed MOUs with 13 sub-national governments, resulting in the ongoing construction of 200 mini-grids across these regions.
One of the key developments announced at the event was a partnership with the Nigerian Correctional Service to install mini-grids and clean energy systems in custodial centers, beginning with the headquarters in Abuja.
Controller-General of Corrections, Sylvester Nwakuche, lauded the initiative, stating it would benefit over 81,000 inmates, offering not just power but tools for rehabilitation and post-release empowerment.
He mentioned that inmates are already looking forward to opportunities in education and vocational training enabled by the electricity infrastructure.
Aliyu also revealed future collaboration with Galaxy Backbone to align energy and internet infrastructure deployment in educational institutions, aiming for cost-effective, scalable solutions.
Executive Director of Technical Services, Umar Umar, reported that REA has already deployed over 160 megawatts of solar capacity, powering 1,650 communities and over 1,000 healthcare centers, reaching six million Nigerians.
He emphasized that rural electrification goes beyond power provision—it is a critical driver of education, healthcare, economic productivity, and national development.
Sa’ad Hamidu, Managing Director of NIRSAL Plc, added that the partnership with REA is designed to support agribusiness clusters and rural SMEs through clean energy access and credit risk guarantees.
He noted that with over 60 percent of Nigeria’s population engaged in agriculture, electrifying rural areas is essential for economic transformation.
In sum, the REA’s multi-stakeholder collaboration seeks not just to deliver power, but to foster long-term sustainability, local development, and inclusive economic growth across Nigeria.