Although, there is no clear data establishing the exact number of people in rural Nigerian communities without electricity.
However, World Bank data is saying that over 85 million people in Nigeria are either not served or are underserved in electricity, with most of them living in rural areas.
In response to ongoing agitation by electricity starved population, the federal government established the Nigeria Rural Electrification Agency (REA), as a special purpose programme to solve electricity challenges in rural parts of the country.
As the organisation that manages electric power in remote areas, the REA is committed to solving the problem of power access for its constituents and the agency is responsible for the main business scope of Nigeria, covering new power generation, microgrids, and distribution network construction.
Modestly much has been achieved by the agency but stakeholders say that there are still energy challenges that remain to be solved.
The REA is Nigeria’s federal government agency that was created to facilitate off-grid development. Initially, the country’s power sector was integrated with a monopolistic arrangement.
The sector was recently unbundled, based on the promulgation of the Electricity Power Sector Reform Act (EPSRA), and transmission, generation, and distribution were all separated.
Private sector participation was encouraged by the legislation and it led to the creation of the REA with the mandate of facilitating the Rural Electrification Fund and the development of off-grid electrification for rural and unserved areas.
As part of the implementation of the REA, the federal government, in collaboration with the agency, secured $250 million in funding from the World Bank and $200 million from the African Development Bank for the Nigerian Electrification Project (NEP). The project was designed to incentivise private sector participation and facilitate the development of sustainable electricity.
The EPSRA provided the enabling ground for private sector participation and government’s Vision 2030 has a framework where renewable energy is an integral part of the country. The Rural Electrification Strategy and Implementation Plan (RESIP) provides details for how the REA operates within the country and provides an operational framework.
The Agency has different components designed to target specific areas of need and in all these components, there is a need for a huge provision of inverters, batteries, solar systems, PV panels, communication, and appliances that ensure mini-grids are working and communicating with a system that monitors their performance.
The agency, is building strong partnerships with a broad spectrum of private sector participation.
A key participant Huawei is helping in the provision of key requirements to build the mini-grids and in their capacity to provide after-sales support systems that are attractive to EPC (engineering, procurement, and construction services) companies.
Under the projects, over 83 mini-grids have been built covering more than 26,000 connections have been achieved.
There are over 200,000 connections in the pipeline, and over 1.4 million connections impacting over 6 million Nigerians for solar home systems which has also covered seven teaching institutions (universities) and one hospital, helping over 150,000 students with a ready, conducive learning environment.
Revving The Tempo With AfDB Facility
With the African Development Bank (AfDB) readiness to disburse the $250 million fund for the NEP, under the Rural Electrification Agency (REA), and extended support to Northern Nigerian states through the $ 20 billion 10,000MW Northern Africa Desert to Power fund, more communities are set to be illuminated thus creating more economic and social development among the people.
NATIONAL ECONOMY understands that Adebayo Adelabu, Minister of Power, further transacted a Bilateral Cooperation meeting with the AfDB cabinet, which was presided over by Dr. Akinwumi Adeshina, AfDB President, at the “Just Energy Transition and Agricultural Transformation for Africa” conference in Busan, South Korea.
During the engagement the AfDB confirmed readiness to disburse a previously approved $250million fund for the NEP under the REA, dedicated to providing electricity access to served and underserved communities in Nigeria.
It is asserted that the Northern Nigerian states will also benefit from the AfDB’s $20 billion Desert-to-Power initiative, which aims to develop 10,000 MW of solar power for eleven African countries.
Adelabu therefore emphasised that during the Bilateral Cooperation meeting with the African Development Bank (AfDB) cabinet, the Nigerian delegation secured an In-Principal Agreement from AfDB for Technical Advisory Sponsorship, potentially encompassing stress testing and capacity simulation of Nigeria’s Power infrastructure.
The power minister said the aims of the technical advisory sponsorship was to establish operational capacity across the entire value chain, facilitating project prioritisation.
Earlier, during the summit Kyungho Choo, South Korea’s Deputy Prime Minister, and AfDB President Akinwumi signed an agreement for an additional $28 million to the Korea-Africa Economic Cooperation Trust Fund. As of December 31, 2022, total contributions to the KOAFEC Trust Fund stood at $108.04 million.
The fund, established in 2006, is the largest bilateral trust fund of the African Development Bank (AfDB), supporting project preparation, capacity building, and technical assistance in regional member countries, including joint research and knowledge sharing.
The Trust Fund and the $600 million Korea-Africa Energy Investment Framework will support African countries in strengthening human capacity and technology for universal energy access and making Africa the world’s breadbasket.
Mr. Kyungho Choo, who also doubles as Korea’s Minister of Economy and Finance, in his remark highlighted Korea’s strength in high-tech industry and innovative technology.
He also pointed to the many opportunities that Africa offered as the world’s future market and industrial base with a vibrant young population.
Choo said that in cooperation with the African Development Bank, Korea supported energy projects for Africa’s sustainable development.
Forging Fresh Collaboration
The REA believes that partnership plays greater role in achieving its mandate.
As a result and understanding of such structures the REA and the National Agency for Science and Engineering Infrastructure (NASENI), are coming together to make new impact in energy penetration in rural communities.
To achieve this the Executive Vice Chairman/CEO of the NASENI, Mr Khalil Halilu and the managing director/CEO of the Rural Electrification Agency (REA), Mr. Ahmad Salihijo Ahmad, have agreed to work together to deploy NASENI Solar resources and other renewable energy technologies, to increase electricity supply to Nigeria’s rural areas.
This commitment was the outcome of discussions between the two chief executives in Abuja recently when the EVC/CEO of NASENI visited the Rural Electrification Agency (REA) office as part of his efforts to engage with stakeholders to promote the adoption of NASENI’s technologies.
Mr. Halilu, who has assumed office as NASENI’s chief executive, said, “The focus is to hit the ground running by nurturing effective collaborations with the right stakeholders who will assist NASENI to fulfil its mandate of providing the science and engineering infrastructure base for Nigeria’s businesses and economy to thrive.”
According to him, “The strategy, going forward, for NASENI includes knocking on the doors of potential end-users of the agency’s technology and engineering products, making off-take of our Research & Development (R&D) easy, while also bringing the direct impact of our work to bear on the Nigerian economy.”
The two chief executives pledged to work together to bring down the cost of solar power installation in rural areas, through efforts such as increased local production of solar panels by NASENI. The overall goal, according to the REA MD, Ahmad Salihijo, is to facilitate the Federal Government’s ambition to achieve the electrification of Nigeria’s rural areas in record time.
Earlier Mr. Halilu visited the Director General/CEO of the National Information Technology Development Agency (NITDA) Mr. Kashifu Inuwa Abdullahi, on a similar mission. The two CEOs emphasized the need to look inward and develop local content (human and material) capacity to transform the economy.
Halilu sought to leverage on the long-standing relationship between himself and the NITDA boss, and also between the two organisations, to share experiences and best practices in management and in resource optimisation.
Abdullahi disclosed that NITDA’s strategy of focusing on changing both the mind-sets and skill-sets of its staff are two critical factors that have helped the agency achieve up to 62 percent of its goals and objectives within two (2) years, ahead of its four (4) year projection. He noted that the same approach would work for NASENI, as long as there was a well-thought-out strategic plan, and clarity of vision and goals.
