REA boss supports $2bn renewable energy investments probe

The Managing Director of the Rural Electrification Agency, Abba Aliyu, has welcomed the decision of the House of Representatives to probe Ministries, Departments, and Agencies involved in the investment, procurement, and receipt of grants aimed at developing the renewable energy sector in Nigeria.

In an interview with our correspondent, Aliyu stated that scrutiny was not only necessary in the sector but also welcomed, especially as Nigerians are yearning for improved electricity supply.

The PUNCH reports that the lawmaker representing Oshodi-Isolo II Federal Constituency, Lagos State, Jesse Onuakalusi, had earlier moved for the investigation of the funds, totalling $2bn from 2015 to date.

The resolution titled ‘Need to Investigate Investments in Renewable Energy Sector and Foreign Grants received from 2015 till date’, mandated the Committee on Renewable Energy to investigate Ministries, Departments, and Agencies of the government associated with the investment, procurement, and receipt of grants meant to develop the renewable energy sector from 2015 to date and report within four weeks for further legislative action.

The lawmakers said the Federal Government had in the past nine years made substantial investments and attracted multimillion-dollar foreign grants to the renewable energy sub-sector of Nigeria’s power sector to create sustainable alternative electricity for Nigerians.

They noted that in December 2023, the World Bank approved a $750m facility to boost renewable energy in Nigeria, to provide over 17.5 million Nigerians with improved access to electricity through distributed renewable energy solutions.

The House also recalled that the Federal Government in 2020 launched a $200m renewable energy project, tagged ‘Nigeria Electrification Project’ aimed at providing off-grid energy to over 500,000 people across 105,000 households in rural communities, funded by the African Development Bank.

However, the lawmakers further regretted that despite attracting over $2bn investments in the renewable energy sector since 2015, as reported by the Rural Electrification Agency in 2023, there had been no noticeable improvement in the sector.

As a result, the House mandated the relevant committee to investigate all government MDAs involved.

The REA boss told Sunday PUNCH, “I believe scrutiny is not only needed in the sector but welcome, particularly as Nigerians are yearning for improved electricity supply across the board due to the rising costs of energy and the rising cost of living.”

However, Aliyu held that the grants and loans provided by Development Finance Institutions had been revolutionary.

“Having said that, from the Agency’s perspective, the support provided by the DFIs and partners in the form of grants and loans in the off-grid sector has been truly revolutionary as we’ve seen the emergence and continued development of an entire ecosystem in the off-grid space: private developers, financiers, original equipment manufacturers, institutional investors and so on,” he stated.

According to Aliyu the main aim of these grants is to catalyse private sector investment, saying over 5 million Nigerians have been impacted by solar power.

“The main aim of these grants is to catalyse private sector investment which we have seen happen with the Nigeria Electrification Project, with about 150 privately financed mini-grids and a great number of stand-alone solar that has impacted over 5 million Nigerians.”