PRESS RELEASE
REA SIGNS MEMORANDUM OF UNDERSTANDING WITH OANDO CLEAN ENERGY LIMITED TO BOOST RENEWABLE ENERGY ACCESS ACROSS NIGERIA
JUNE 13th, 2023
Abuja, Nigeria –The Rural Electrification Agency (REA) and Oando Clean Energy Limited (OCEL) signed a Memorandum of Understanding (MoU) on June 13th, 2023, at the corporate headquarters of REA in Abuja, Nigeria. The primary objective of the MoU is to enhance collaboration between the private sector and the Agency to promote the implementation of sustainable renewable energy solutions nationwide. The partnership between the REA and OCEL was forged following successful engagements with OCEL through the Solar Power Naija (SPN) programme./span>
As a significant contributor to Nigeria’s off-grid and renewable energy sector, the REA has maintained a strong track record of attracting private sector investment, facilitating inter-sectorial collaboration, and ultimately, ensuring the effective deployment of appropriate off-grid solutions across the country.
As one of the key players in the energy space, Oando PLC established its clean energy subsidiary, Oando Clean Energy Limited (OCEL) in 2021. The REA – Oando collaboration signifies the beginning of a strategic alliance aimed at exploring innovative approaches to clean energy development, fostering socio-economic growth in post-oil subsidy Nigeria.
During the MoU signing ceremony, Engr. Ahmad Salihijo Ahmad, the Managing Director/CEO of the Rural Electrification Agency, emphasized the importance of leveraging renewable energy opportunities as a means to mitigate the impact of subsidy removal in Nigeria. He further expressed his satisfaction with the REA – Oando partnership, by stating that “it will bring about mutually beneficial collaboration, knowledge exchange and experiences all targeted at achieving the common goal of optimizing renewable energy. Engr. Ahmad added that “the REA has a history of ensuring whatever kind of financing is available to the REA, there are programmes and initiatives the REA implements that can be used to deliver impact across the nation”.
Dr. Alex Irune, the President and CEO of Oando Clean Energy Limited, commended the REA for its understanding and leveraging the private sector in achieving sustainable energy access across the country. Dr. Alex Irune stated that “Oando is keen on renewable energy and is excited for the opportunity to create value that the country needs. He expressed his confidence in the collaboration with REA, while explaining that “what the REA has effectively done is to take the bull by the horn and derisk investment opportunities. I wouldn’t be signing this MoU today if there wasn’t an enabling environment provided by the REA. I commend the REA on their approaches, programmes, and achievements over the years. These approaches are sustainable”.
Engr. Barka Sajou, the Executive Director, Technical Services at the REA, explained the Agency’s paradigm shift in delivering fit-for-purpose electrification projects. He stated that “delivering on sustainable energy access across the nation must go beyond just connections and rather serve as an enabler of growth in communities while targeting electrification projects to people’s sources of livelihood”.
Ms. Barbara Izilein, the Head of the Solar Power Naija Programme (SPN), reiterated the REA’s commitment to fostering private sector engagements and partnerships that attract sustainable funding and expand energy access nationwide. Ms. Barbara stated that “the intention for this collaboration is to encourage private sector investment to deploy sustainable renewable energy projects across the country. The REA through the Solar Power Naija programme will continue to provide support to developers by helping to catalyse access to funding at reasonable terms for developers in the off-grid space. This MoU signing will support the expansion targets of the REA in providing energy access to communities.”
Through this partnership, OCEL has now joined the list of critical partners plugging into the Federal Government’s Solar Power Naija Programme to target communities and power 5 million homes, impacting 25 million Nigerians nationwide, while creating about 250, 000 jobs in the nation’s renewable energy sectorThe repositioned REA has, over the years, strengthened ties with key stakeholders in the private sector and the development space. Beyond that, the Agency has realigned itself with the state governments through the Nigeria Governors Forum. In line with the mandate of the REA, the state governments continue to play a pivotal role in the Agency’s consistent deployment of people-centred electrification projects
ABOUT THE RURAL ELECTRIFICATION AGENCY
The Rural Electrification Agency (REA) is the Implementing Agency of the Federal Government of Nigeria (FGN) under the Federal Ministry of Power tasked with the electrification of unserved and underserved communities to catalyze economic growth and improve quality of life for Nigerians. The Agency was established under part IX, Sections 88- 89 of the Electric Power Sector Reform Act (EPSRA), 2005.
The REA is currently implementing the Rural Electrification Fund (REF), Capital Projects, Nigeria Electrification Project (NEP), Solar Power Naija (SPN), Energizing Education Programme (EEP), Energizing Economies Initiative (EEI), Energizing Agriculture Programme (EAP), Energy for All – Mass Rural Electrification and Research and Innovation Hub. Africa Mini Grids Programme and Derisking Sustainable Off-Grid Lighting Solutions..
The Agency is responsible for creating an enabling environment for private sector-led projects, which includes conducting feasibility assessments, energy audits, enumeration, data analysis, identification of qualified private sector developers, and project stakeholder engagements
ABOUT SOLAR POWER NAIJA PROGRAMME
The Solar Power Naija Programme was launched as part of the Economic Sustainability Plan (ESP) to achieve the roll out of 5 million new solar connections in off grid communities. This program is expected to generate an additional N7 billion increase in tax revenues per annum and $10 million in annual import substitution. The objectives of the programme is to expand energy access to 25 million individuals (5 million new connections) through the provision of Solar Home Systems (SHS) or connection to a mini-grid, increase local content in the off-grid solar value chain, and facilitate the growth of the local manufacturing and assembly industry and Incentivize the creation of 250,000 new jobs in the energy sector.
For enquiries, please contact the Rural Electrification Agency:
info@rea.gov.ng