- REA secures $1.6 billion to expand off-grid renewable energy across Nigeria, backed by international and public funds.
- Ondo State signs an MoU with REA to boost rural electrification and aims to become a renewable energy investment and manufacturing hub.
The Managing Director of the Rural Electrification Agency (REA), Abba Aliyu, announced on Tuesday, July 22, that the agency has secured a $1.6 billion funding pipeline to accelerate renewable energy deployment across Nigeria.
Aliyu disclosed this in Abuja during a state-focused roundtable engagement with Ondo State Governor, Lucky Aiyedatiwa. The session “From Access to Impact: Unlocking Ondo’s Renewable Energy Potential for Economic Transformation and Socioeconomic Inclusion” aimed to deepen subnational collaboration on clean energy.
Furthermore, Aliyu explained that the REA raised the funding through public-private partnerships, multilateral financing, and climate funding sources. “We are pursuing close to $1.6 billion in funding. This includes $200 million from the Japan International Cooperation Agency (JICA), with final signing expected during the Minister of Power’s visit to Japan next month,” he said.
He also revealed that the United States Department of Justice plans to allocate $50 million in repatriated funds to support the agency’s projects. “They saw the impact of our ongoing programs and agreed to fund further infrastructure,” he added.
Meanwhile, Aliyu highlighted additional budgetary commitments. “We have ₦500 billion in our capital budget. ₦100 billion is allocated to solarise public institutions under a national initiative. Through that, we aim to energise across Ondo State alone,” he said.
He also stressed the need to execute. “We have the technical expertise and project pipeline in place. We’re looking for state governments to partner with us and scale deployment,” he stated.
Aliyu spotlighted the role of Renewable Energy Service Companies (RESCOs), who have collectively deployed over $2 billion worth of projects nationwide. “These companies can raise capital, manage projects, and work closely with communities. They are essential partners in our mission,” he said.
In addition, he assessed Ondo State’s preparedness for large-scale energy investments. “Ondo scores 4 out of 5 in policy capacity. However, it still needs to improve in areas like funding mobilisation readiness,” he noted. “Our strategy is to support states in bridging those gaps while they enhance their regulatory and institutional frameworks.”
Aliyu also referenced the National Electrification Strategy and Implementation Plan (NESIP), which targets universal access. “We’ve identified 119 million Nigerians without electricity and 22 million households needing service. We’re committed to working with every state to close that gap,” he said.
During the same event, the Ondo State Government signed a Memorandum of Understanding (MoU) with the REA to deepen rural electrification and fast-track clean energy adoption.
Governor Lucky Aiyedatiwa described the agreement as a milestone. “This MoU is catalytic. It opens the door for partnerships, investment, and long-term growth,” he said. He welcomed the REA and its partners, stressing that the collaboration aligns with the state’s development agenda.
Additionally, Aiyedatiwa said Ondo has taken bold steps to reform its electricity landscape. “We enacted the Ondo State Electric Power Sector Law in 2020. It laid the legal foundation for developing and regulating the power sector in our state,” he stated.
He also noted that Ondo now operates more mini-grid projects than any other Nigerian state and attributed that success to political will, policy clarity, and institutional support.
“We established the Ondo State Electricity Regulatory Bureau to oversee electricity markets locally. In parallel, we created a state Rural Electrification Agency with a mandate mirroring the federal REA’s operations,” he said.
According to Aiyedatiwa, these institutions ensure that local solutions are executed promptly and align with national plans like the National Education Sector Investment Plan 2020-2030 (NESIP). “We structured them to deliver with speed, strategic focus, and community relevance,” he said.
The governor stressed that Ondo offers an investor-friendly environment. “We provide fast-track permitting and fiscal incentives. Developers consider us a dependable partner in lighting up underserved communities,” he said.
He disclosed that the state’s electricity roadmap targets critical sectors. “We’re powering agro-processing zones, healthcare centres, schools, and rural SMEs, especially in hard-to-reach areas like Golo, Nduru, Idowe, Oro, and Akoko,” he added.
Aiyedatiwa urged the REA and its partners to consider locating a renewable energy manufacturing hub in Ondo. “We’re ready. This vision is rooted in sustainability and long-term impact,” he said.
The governor confirmed the state is already deploying smart meters and exploring energy data systems. “We’ve launched smart metering and are working on data-driven management to ensure durability of every project we execute,” he said.
He concluded by praising the REA’s commitment and reaffirming Ondo’s readiness. “This partnership must serve as a springboard for job creation, local innovation, and inclusive prosperity,” he said.
The roundtable marked a significant step toward operationalising the Electricity Act at the state level and scaling decentralised energy systems across the federation.