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REA secures $1.6 billion for Nigeria’s renewable energy projects

 

By Abdullahi Lukman

The Rural Electrification Agency (REA) has secured nearly $1.6 billion in funding to implement renewable energy projects across Nigeria.

Agency’s Managing Director, Abba Aliyu, disclosed this during a roundtable engagement with Ondo State Governor, Lucky Aiyedatiwa, in Abuja on Tuesday.

The funds, drawn from public-private partnerships, multilateral institutions, and climate finance, are earmarked to accelerate the deployment of solar mini-grids, standalone systems, and other clean energy infrastructure, particularly in underserved communities.

Aliyu detailed the funding pipeline, which includes $200 million from the Japan International Cooperation Agency (JICA), with a final signing expected next month. An additional $50 million in repatriated funds from the U.S. Department of Justice has also been allocated to the agency.

Furthermore, the REA’s capital budget includes nearly N500 billion, with N100 billion specifically designated for national public sector solarization. A program to energize 25 communities across states is also anticipated to receive approximately $500 million.

The REA MD highlighted the crucial role of Renewable Energy Service Companies (RESCOS), noting their competency in raising debt and equity, managing infrastructure, and engaging communities.

These companies have deployed over $2 billion in infrastructure nationwide, reaching remote areas.

While assessing states’ readiness, Aliyu commended Ondo State for scoring four out of five in policy capacity readiness but urged improvement in funding and data readiness.

He emphasized the REA’s National Electrification Strategy and Implementation Plan, which aims to electrify 119 million people across 22 million households currently without access.

In a related development, the Ondo State Government signed a Memorandum of Understanding (MoU) with the REA. Governor Aiyedatiwa described the MoU as a “significant milestone” for unlocking strategic partnerships and accelerating electrification.

He highlighted Ondo State’s prior legislative steps, including the 2020 Ondo State Electric Power Sector Law and the establishment of the Ondo State Electricity Regulatory Bureau and a state-level Rural Electrification Agency.

Aiyedatiwa positioned Ondo State as a prime location for renewable energy investments due to its clear regulatory framework, fast-track permitting, and fiscal incentives.

He urged the REA and its partners to consider making Ondo State a hub for renewable energy manufacturing and innovation, noting the state’s efforts in deploying smart meters and exploring data-driven energy management systems.

The governor concluded by stressing that the partnership would foster job creation, innovation, and sustainable prosperity.

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