LAGOS, Nigeria (VOICE OF NAIJA) – The Managing Director, Rural Electrification Agency (REA), Abba Aliyu, has expressed support for the House of Representatives’ decision to investigate Ministries, Departments, and Agencies (MDAs) involved in renewable energy sector investments and grants procurement.
Speaking in an interview, Aliyu emphasized the importance of scrutiny in the sector amid public demand for improved electricity supply.
The probe initiated by a lawmaker representing Oshodi-Isolo II Federal Constituency, Lagos State, Jesse Onuakalusi,
aims to review the utilization of $2 billion invested in renewable energy since 2015.
The resolution titled ‘Need to Investigate Investments in Renewable Energy Sector and Foreign Grants received from 2015 till date’, directs the Committee on Renewable Energy to scrutinize government MDAs involved in investing in, procuring, and receiving grants for the renewable energy sector.
They are required to report their findings within four weeks for subsequent legislative deliberation.
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Over the past nine years, lawmakers noted that the Federal Government has made significant investments and secured multimillion-dollar foreign grants for Nigeria’s renewable energy sub-sector within the power industry, aiming to establish sustainable alternative electricity solutions for Nigerians.
In December 2023, it was highlighted that the World Bank approved a $750 million initiative aimed at enhancing renewable energy in Nigeria.
This effort seeks to improve electricity access for more than 17.5 million Nigerians through distributed renewable energy solutions.
The House also noted that in 2020, the Federal Government initiated a $200 million renewable energy project known as the ‘Nigeria Electrification Project.’
This project aimed to provide off-grid energy to more than 500,000 individuals across 105,000 households in rural communities, supported by funding from the African Development Bank.
However, lawmakers expressed disappointment that despite attracting over $2 billion in investments in the renewable energy sector since 2015, as reported by the Rural Electrification Agency in 2023, there has been little to no discernible improvement in the sector.
Therefore, the House instructed the appropriate committee to undertake a comprehensive investigation into all relevant government MDAs involved in the issue.
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 emphasized that the grants and loans provided by Development Finance Institutions had brought about significant and transformative changes.
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“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 primary objective of these grants is to stimulate private sector investment, resulting in the positive impact of solar power on over 5 million Nigerians.
“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.”