• Monday, December 23, 2024
businessday logo

BusinessDay

FG urges REA to expand electricity access in Nigeria

What’s next for DisCos as Lagos secures regulatory autonomy?

Kashim Shettima, the Vice President of Nigeria, has urged the Rural Electrification Agency (REA) to intensify its efforts to fast-track Nigeria’s progress toward achieving universal electricity access and increasing the availability of power to citizens.

In response, he approved the REA’s proposal to collaborate with the National Economic Council (NEC) to engage state governors and involve them in efforts to provide electricity to communities nationwide.

Shettima’s remarks were made in a statement shared on his X handle following a presentation on the National Electrification and Implementation Plan (NESIP) by a delegation from REA, led by its Managing Director/CEO, Abba Aliyu, at the Presidential Villa in Abuja.

Meanwhile, the REA announced it has secured a $750 million grant from the World Bank and African Development Bank (AFDB) to fund rural electrification projects across Nigeria.

“To me, I appreciate you, I adore you, I respect you, but we need to think outside the box and we need to think big,” VP who is Chairman of NEC told the REA delegation, assuring them of maximum support from the council and the state governors.

“The most startling revelation of this presentation has to do with the correlation between access to electricity and financial inclusion. Hence, I believe our job is cut out for us, and I want to assure you that we are going to partner with your agency so that we can meet the aspiration of the Nigerian people for access to electricity,” he added.

Read also: Electricity workers down tools in PHED, as power outage persist

The Vice President encouraged REA to intensify its work in providing more Nigerians with access to electricity, while also praising the agency for its excellent performance across multiple sectors.

However, he criticised the agency for its lack of visibility, pointing out that it has not done well in raising public awareness or informing Nigerians about the ongoing efforts to tackle the nation’s electricity shortage.

He said, “I am afraid you need to overhaul your PR management team. People need to know – Nigerians ought to know

“At one point in time, we were getting 5 megawatts from the grid for Borno State. Just one plant is generating 12 megawatts for the University of Maiduguri and the Teaching Hospital.

“But you have not been publicising your activities. So, I will ask you to look at your media team and see to it that you get the loudest decibel in the social media space and the traditional media.”

Approving the agency’s proposal to work with NEC and state governors on the electrification project, Shettima instructed REA’s management to collaborate with the Special Adviser to the President on NEC and Climate Change, Rukaiya El-Rufai, to formally present the project during one of NEC’s meetings.

This, he said, is necessary “so that the governors too, who are very essential in our drive towards electrifying our communities, can have a buy-in from your submissions.”

Earlier in his presentation, Aliyu identified four key funding sources for the agency: the World Bank, the African Development Bank, the Electricity Market (which involves surplus revenue from the liquidator), and grants obtained through partnerships with international development agencies that provide funds to create various models and concepts in the country.

Aliyu mentioned that before he was appointed Managing Director of REA, he led the project management unit responsible for executing a $550 million REA project financed by the World Bank and AfDB.

He further explained that the agency successfully secured approval for an additional $750 million grant, noting that the largest public sector-funded project and its implementation are about to begin.

He pointed out some of the agency’s ongoing electricity projects, including a 12-megawatt plant in Maiduguri, which is nearing completion and set to be commissioned within two months. This plant currently supplies electricity to the University of Maiduguri and the Teaching Hospital, with plans to extend it to the state’s water treatment plant.

The managing director also emphasised that the new leadership of the agency is prioritising six strategic areas, including the National Electrification and Strategic Implementation Plan (NESIP), which aligns with the federal government’s vision for sustainable and inclusive energy. Additionally, it seeks to enhance coordination between regional governments to ensure the successful implementation of electrification projects across Nigeria.

Join BusinessDay whatsapp Channel, to stay up to date

Open In Whatsapp