The Rural Electrification Agency (REA) has secured a funding pipeline of $1.6 billion aimed at expanding off-grid renewable energy projects across Nigeria.
This major milestone was announced by Abba Aliyu, managing director of REA on Tuesday, July 22, during a high-level roundtable in Abuja with Ondo State Governor Lucky Aiyedatiwa.
The event, themed “From Access to Impact: Unlocking Ondo’s Renewable Energy Potential for Economic Transformation and Socioeconomic Inclusion,” focused on strengthening subnational collaboration for clean energy development.
According to Aliyu, the REA raised the substantial funding through a combination of public-private partnerships, multilateral financing, and international climate funds. He noted that $200 million of the funding is expected to come from the Japan International Cooperation Agency (JICA), with a final agreement anticipated during an upcoming visit of the Nigerian Minister of Power to Japan. Additionally, the United States Department of Justice plans to commit $50 million in repatriated funds to support REA’s infrastructure projects, recognizing the visible impact of its existing programs.
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Beyond international contributions, Aliyu highlighted local budgetary support. “From our ₦500 billion capital budget, ₦100 billion is designated for solarising public institutions under a national initiative. Ondo State alone will benefit from this through broad electrification projects,” he said. Aliyu emphasized that while funding is crucial, execution is paramount.
“We have the technical capacity and project pipeline ready. What we need now is strong state-level partnerships to scale these efforts,” he stressed.
Aliyu also emphasized the critical role of Renewable Energy Service Companies (RESCOs), which have already implemented over $2 billion worth of projects across Nigeria. These firms, he explained, are pivotal due to their ability to mobilize capital, execute projects efficiently, and work closely with local communities.
Assessing Ondo State’s readiness for large-scale energy investment, Aliyu gave the state a strong policy capacity score of 4 out of 5, while noting the need for improved mechanisms to mobilize funding. He assured that the REA is committed to helping states close such gaps and align with national strategies like the National Electrification Strategy and Implementation Plan (NESIP), which aims to achieve universal electricity access. “There are still 119 million Nigerians without power, and 22 million households that need service. We are determined to work with every state to change that,” he said.
A key outcome of the roundtable was the signing of a Memorandum of Understanding (MoU) between the REA and Ondo State to fast-track rural electrification and clean energy expansion. Governor Lucky Aiyedatiwa called the agreement a turning point for the state’s energy sector. “This MoU is a game-changer. It signals new partnerships, investment flows, and long-term growth,” he said.
Aiyedatiwa highlighted legislative and institutional reforms that have positioned Ondo as a leader in decentralized energy systems. “We enacted the Ondo State Electric Power Sector Law in 2020, establishing a legal foundation for a well-regulated energy sector,” he explained. The state has since launched more mini-grid projects than any other in Nigeria—an achievement attributed to strong political commitment, supportive policies, and dedicated institutions like the Ondo State Electricity Regulatory Bureau and the state’s Rural Electrification Agency.
The governor further outlined the state’s proactive approach to energy infrastructure development, particularly in underserved communities. “We’re electrifying agro-processing zones, rural health facilities, schools, and small businesses in remote areas such as Golo, Nduru, Idowe, Oro, and Akoko,” he said. He invited the REA and its partners to consider setting up a renewable energy manufacturing hub in the state, reinforcing Ondo’s ambition to become a clean energy innovation center.
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Aiyedatiwa also revealed that the state has begun deploying smart meters and is adopting data systems to ensure effective project monitoring and durability. Concluding his remarks, he praised REA’s commitment and reaffirmed Ondo’s readiness to lead in the renewable energy space. “This collaboration must drive jobs, innovation, and inclusive development,” he said.
