Integrated Approach to Development: REA, FHFL Partner to Embed Clean Energy in Nigeria’s Affordable Housing Drive

ABUJA, NIGERIA - On Thursday, the 3rd of September 2026, after sustained engagement and strategic alignment between both institutions, the Rural Electrification Agency (REA) and Family Homes Funds Limited (FHFL), a special-purpose incorporated company serving as the platform through which the Federal Government is financing the construction of affordable housing units across Nigeria and enabling long-term mortgage finance to qualified beneficiaries. Both institutions officially signed a Memorandum of Understanding (MoU) to integrate sustainable energy planning and renewable energy systems into affordable housing developments across Nigeria, strengthening the link between access to housing and access to reliable, affordable and sustainable electricity.

The five-year partnership establishes a framework for embedding clean energy access considerations into FHFL-supported housing projects from the earliest stages of feasibility and design through construction, commissioning and post-occupancy operations. The collaboration is designed to improve energy affordability and resilience for beneficiaries while advancing green finance, environmental, social and governance (ESG) objectives and Nigeria’s broader climate ambitions.

Under the agreement, REA has committed to provide technical support, including valuable energy access data, renewable energy and electrification planning, and recommendations on fit-for-purpose solutions such as grid connections, rooftop solar, mini-grids and hybrid systems. The Agency will also deploy its geospatial mapping and planning tools to support site selection, energy-demand modelling and infrastructure optimization for FHFL housing developments.

In alignment with this strategic partnership, FHFL will, in turn, share its housing project pipeline with REA at the feasibility stage, incorporate energy planning into its project approval processes, provide for energy infrastructure costs within project budgets and financing structures, and require energy-readiness plans from developers as a condition of FHFL financing.

As the nation continues to advance partnerships on energy sustainability and affordable housing, the partnership between the REA and FHFL is deliberate and aligns with President Bola Ahmed Tinubu’s tenets on socioeconomic growth and people-centred policies, as outlined in the President’s Renewed Hope Agenda. Through the partnership, REA and FHFL aim to demonstrate a more integrated approach to development, in which affordable housing and sustainable energy access are planned together, helping deliver healthier, more resilient, and future-ready communities for Nigerians.

While speaking on the partnership, Abba Abubakar Aliyu, the MD/CEO of REA, commended FHFL's leadership, highlighting the institution’s people-centred social impact projects on housing infrastructure across Nigeria. Abba explained that the agreement represents a sustained advancement of universal energy access as an essential component of housing development, not an afterthought. He added that “Electricity is a critical component and a catalyst for both social and economic growth of every individual. By combining FHFL’s housing delivery platform with REA’s energy planning expertise, data and technical capabilities, we can design communities that are not only affordable to acquire, but also more affordable and resilient to live in.”

Managing Director of FHFL, Abdul Mutallab Mukhtar, said the partnership reflects the organisation’s commitment to delivering homes that are affordable, sustainable and fit for the future. He explained that “beyond the institution’s objective of investing in affordable housing and changing lives, integrating energy planning into housing developments from the outset creates an opportunity to deliver homes that are more energy-efficient, resilient and affordable over their lifetime”. Mukhtar added that the partnership between the REA and FHFL will advance development across Nigeria as both institutions share similar mandates.

Both institutions equally aligned at the programmatic level, especially on powering FHFL’s planned university hostel development through the REA’s Energizing Education Programme (EEP), as well as the exploration of collaborative opportunities under the Agency’s E-HEART programme and grid-extension interventions.

The partnership will be supported by a Joint Steering Committee and a Technical Working Group responsible for strategic oversight, technical coordination, implementation tracking, data sharing and performance reporting. The parties will monitor indicators including the number of pilot projects, households served, energy-cost reductions and environmental impacts.

Potential energy interventions identified under the framework include solar, mini-grid and hybrid systems, centralised rooftop solar with shared metering, community-scale mini-grids, solar-powered water systems and infrastructure designed to accommodate future electric vehicle charging, battery storage and smart-grid connectivity.